Indonesia to halt aviation fuel imports by 2027

By Calvin Purba

Indonesia plans to stop importing aviation fuel (avtur) by 2027 as part of efforts to strengthen energy security under President Prabowo Subianto’s agenda, the Ministry of Energy and Mineral Resources (ESDM) said on Monday.

 “Including aviation fuel, as directed by the President. So by 2027, God willing, we will no longer be importing avtur,” Energy and Mineral Resources Minister Bahlil Lahadalia said.

He said Indonesia would gradually shift to importing only crude oil as domestic refining capacity increases.

 “Going forward, under the President’s instructions, we will only import crude oil. If we are able to do this, these additional measures will further reduce imports,” Bahlil said.

The ministry has also set a target to introduce a 1% vegetable oil blend in aviation fuel by 2027 as part of a broader strategy to curb fuel imports and reduce carbon emissions.

 “Bio-avtur is included in the roadmap, which will be further detailed in a ministerial regulation. Under the roadmap, we aim to reach a 1% vegetable oil blend in aviation fuel by 2027,” said Eniya Listiani Dewi, Director General of New and Renewable Energy and Energy Conservation at the ministry.

The proposed blend would use either palm oil or coconut oil. Indonesia, the world’s largest producer of crude palm oil, is positioning itself as a potential supplier of sustainable aviation fuel (SAF) feedstock and has carried out pilot projects on biofuel use in aviation since 2021.

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The government is also studying the use of used cooking oil—of which Indonesia is the world’s third-largest exporter—for SAF production. Eniya said expanding domestic biofuel use, particularly in aviation, is crucial given Indonesia’s high air passenger traffic and its strategic position in the Indo-Pacific region.

Bahlil made the remarks at the inauguration of the Refinery Development Master Plan (RDMP) Balikpapan project by President Prabowo on Monday. The project has an investment value of about US$7.4 billion, or Rp124.79 trillion, based on an exchange rate of Rp16,864 per U.S. dollar.

The Balikpapan refinery upgrade increases fuel production capacity to 360,000 barrels per day from 260,000 bpd and upgrades output quality to Euro V standards. The project is a key pillar of the government’s Astacita programme aimed at achieving energy self-sufficiency and reducing reliance on imported fuel and liquefied petroleum gas (LPG).

Bahlil has previously said Indonesia will stop importing diesel fuel in 2026 following the completion of the Balikpapan RDMP project. Any diesel imports recorded this year would be part of quotas approved in 2025, he added.

 “But this year, under the President’s instruction, because we already have adequate refinery capacity, the Ministry of Energy and Mineral Resources will no longer issue diesel import permits,” he said.

The phase-out will be implemented gradually. Imports of CN48 diesel have already been fully halted, while imports of CN51 diesel are expected to end in the second half of the year.

Editing by Reiner Simanjuntak