Indonesia is aiming to achieve solar fuel independence by 2026, a goal reaffirmed Sunday by Energy and Mineral Resources Minister bahlil Lahadalia. The enterprising plan centers on the successful completion and operation of the Balikpapan Refinery Development Master Plan (RDMP) project, intended to substantially bolster domestic production capacity.While full reliance on domestic supply is the target, the government has indicated that limited imports might potentially be necessary in early 2026 should refinery operations face delays, though officials remain optimistic about meeting demand through a combination of increased refinery output and expanded biodiesel adoption.
JAKARTA – Indonesia is aiming to eliminate solar fuel imports by 2026, according to a renewed commitment from Energy and Mineral Resources Minister Bahlil Lahadalia. The move hinges on the successful operation of the Balikpapan Refinery Development Master Plan (RDMP) project in East Kalimantan, which is expected to meet domestic demand.
“Our agenda for 2026 is to have no more solar imports,” Bahlil stated on Sunday, December 28, 2025, as reported by Antara. The Indonesian government’s push for energy independence comes as global fuel markets remain sensitive to geopolitical factors and supply chain disruptions.
The Minister indicated that imports would only continue if domestic supply falls short. However, he expressed confidence that once local production ramps up, reliance on foreign sources will be unnecessary. “But it depends on Pertamina. If, let’s say, they can’t be ready until March, then we might need a small amount in January and February – something we’re currently evaluating. But even then, I’m evaluating whether we need it. If we’re ready in January and February, there’s no need to import; why would we? But if the need arises, we’ll do what’s necessary,” Bahlil explained.
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Bahlil also affirmed the government’s commitment to improving the quality of solar fuel standards. “We will work towards that. We will continue to do our best,” he said.
President Prabowo Subianto has been briefed on the 2026 import cessation target, which aligns with the anticipated operational timeline of the RDMP Balikpapan project. The refinery is expected to significantly boost domestic production capacity and reduce Indonesia’s dependence on imported fuels.
Beyond the RDMP, the government is actively promoting the use of biofuels through a mandatory biodiesel B50 policy. Bahlil believes that a combination of increased refinery output and expanded biodiesel adoption could lead to a surplus of solar fuel, potentially opening up export opportunities for Indonesia.
The Ministry of ESDM has allocated 15,646,372 kiloliters of biodiesel for 2026, as outlined in Minister of ESDM Decree Number 439.K EK.01 MEM.E 2025. This allocation is divided into 7,454,600 kiloliters for Public Service Obligation (PSO) and 8,191,772 kiloliters for non-PSO.
Eniya Listyani, Director General of New and Renewable Energy and Energy Conservation, explained that the biodiesel program for 2026 will be supported by collaboration between 32 fuel oil companies and 26 biofuel companies designated by the government, maintaining the existing incentive scheme for the PSO sector. “The implementation of the mandatory biodiesel program in 2026 will be supported by synergy between 32 fuel oil companies and 26 biofuel companies that have been appointed by the government, while still maintaining the incentive scheme for the PSO sector as in previous years,” Listyani said in Jakarta on Tuesday, December 23, 2025.
The biodiesel allocation is a key component of the government’s strategy to reduce solar imports and strengthen national energy security by utilizing domestic resources.
The Ministry of ESDM projects that the 2026 biodiesel program will have a significant economic impact, with an estimated value-added of Rp 21.8 trillion to the crude palm oil (CPO) industry.
