Heru Andriyanto, Jakarta – Indonesia is recording a surplus of around 1.4 billion liters of subsidized low-grade diesel fuel, sold domestically under the Solar brand, Energy and Mineral Resources Minister Bahlil Lahadalia said on Friday.

The surplus has emerged alongside a sharp increase in biodiesel production under Indonesia's B40 policy, which mandates a 40% biodiesel blend in diesel fuel sold domestically. Government data show biodiesel consumption has risen steadily in recent years, reaching 14.2 billion liters in 2025, up from 9.3 billion liters in 2021.

Additional supply has also come from the operation of a new oil refinery in Balikpapan, which has boosted domestic diesel output, Bahlil said.

Biodiesel consumption in 2025 reached 105.2% of the government's target of 13.5 million kiloliters, contributing to a reduction in fossil diesel imports of around 3.3 million kiloliters, according to the minister.

"Indonesia is now in a diesel surplus of roughly 1.4 million kiloliters," Bahlil said, as quoted on the Energy Ministry's website. The surplus supports the government's goal of ending imports of low-grade diesel fuel in 2026.

Bahlil added that excess diesel supplies would be redirected for the production of aviation fuel as part of broader efforts to optimize domestic fuel use.

The government is also preparing to phase out imports of mid- and high-octane gasoline starting in 2027, he said.

"We are designing a roadmap so that by 2027 Indonesia will no longer import gasoline with octane ratings of 92, 95, and 98," Bahlil said.

Officials say the measures form part of Indonesia's broader strategy to strengthen energy security, reduce fuel imports, and expand the role of biofuels in the national energy mix.

Source: https://jakartaglobe.id/business/indonesia-records-14-billionliter-surplus-in-diesel-suppl