Construction is expected to begin by the end of 2026, with surplus diesel output from Pertamina’s Balikpapan refinery set to supply the new facility.
Indonesia plans to begin construction of its first domestic aviation fuel (avtur) plant by the end of 2026 as part of a strategy to eliminate jet fuel imports by 2027, Energy and Mineral Resources Minister Bahlil Lahadalia said.
State-owned energy company Pertamina is currently preparing the project’s roadmap, with the facility expected to strengthen Indonesia’s energy security by reducing reliance on imported aviation fuel.
“God willing, we will be able to begin construction of an aviation fuel plant in Indonesia by the end of 2026,” Bahlil said on Thursday.
Surplus diesel to support jet fuel production
Bahlil said the project is feasible because aviation fuel and diesel share similar feedstock characteristics. Indonesia has already begun phasing out diesel imports and expects to record a surplus in diesel production following expanded output from Pertamina’s Balikpapan refinery in East Kalimantan.
“Based on our calculations, Indonesia is expected to have a diesel surplus of around 3 million to 4 million kiloliters,” he said.
The government plans to process part of that surplus into feedstock for aviation fuel, allowing Indonesia to gradually replace imported jet fuel with domestic production.
“The surplus diesel will be converted into feedstock for aviation fuel so that by 2027 Indonesia will no longer need to import jet fuel,” Bahlil added.
According to the Energy and Mineral Resources Ministry’s Energy and Economic Handbook 2024, Indonesia imported 1.78 million kiloliters of aviation fuel in 2024, up sharply from 278,000 kiloliters in 2023.