Indonesia achieves diesel self-sufficiency following major refinery expansion

Indonesia has officially declared self-sufficiency in diesel fuel after the expansion of its largest oil refinery in Balikpapan, East Kalimantan. The announcement follows the inauguration of the Refinery Development Master Plan (RDMP) project, as reported by ANTARA.

Speaking at a public event, Coordinating Minister for Economic Affairs Airlangga Hartarto said the completion of the project marks a key step towards Indonesia’s energy independence. According to him, the country will no longer need to import diesel fuel, reducing exposure to global energy market volatility and strengthening national energy security.

The project was inaugurated by President Prabowo Subianto, who described it as the first large-scale refinery development in Indonesia in more than three decades. The upgraded facility is now the largest refinery in the country and plays a central role in meeting domestic fuel demand.

The expansion has raised the refinery’s processing capacity from 260,000 to 360,000 barrels per day, allowing it to supply up to 25 per cent of national fuel requirements. Authorities estimate that the project will reduce annual fuel imports by more than US$4 billion while making a substantial contribution to economic growth.

In addition to diesel, the modernised refinery will produce gasoline, liquefied petroleum gas and petrochemical products. The upgrade is also expected to improve fuel quality by lowering sulphur content and increasing the output of high-value refined products.

Photo: boykpc / iStock