8 Jan 2026
Indonesia is targeting diesel self-sufficiency by 2026 as state-owned energy company Pertamina prepares to bring its expanded Balikpapan refinery to full operational capacity, according to government officials.
Located in East Kalimantan, the Balikpapan refinery upgrade is a central component of Indonesia’s strategy to reduce dependence on imported fuels and strengthen domestic energy security. Once fully operational, the facility is expected to significantly increase national diesel production while improving fuel quality to comply with more stringent environmental standards.
Indonesia is targeting diesel self-sufficiency by 2026 as state-owned energy company Pertamina prepares to bring its expanded Balikpapan refinery to full operational capacity, according to government officials.
Located in East Kalimantan, the Balikpapan refinery upgrade is a central component of Indonesia’s strategy to reduce dependence on imported fuels and strengthen domestic energy security. Once fully operational, the facility is expected to significantly increase national diesel production while improving fuel quality to comply with more stringent environmental standards.
Officials said the refinery expansion will support the government’s broader fuel self-sufficiency programme by boosting output of diesel and other refined products, as well as enhancing the facility’s ability to process a wider range of crude oil types. The project forms part of Indonesia’s Refinery Development Master Plan, which aims to raise domestic refining capacity across multiple locations.
Indonesia continues to rely on imports for a significant share of its petroleum products, particularly diesel, as demand growth has outpaced domestic supply. The Balikpapan expansion is expected to help narrow this gap, reducing exposure to global price fluctuations and easing pressure on the country’s trade balance.
Pertamina said commissioning activities at the Balikpapan site are progressing, with full operations expected to be achieved in phases. The upgrade also includes new processing units designed to produce cleaner, lower-sulphur fuels, supporting Indonesia’s broader downstream modernisation efforts.
Energy analysts noted that the performance of the Balikpapan project will be critical in determining whether Indonesia can meet its 2026 diesel self-sufficiency target, emphasising that timely completion and stable operations will be key factors in its success.
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