Indonesia is aiming to eliminate fuel imports within the next two to three years as part of a wider strategy to strengthen national energy independence. President Prabowo Subianto outlined the goal while inaugurating an electric commercial vehicle assembly plant in Central Java, highlighting a large-scale electrification programme, expanded renewable fuel production and increased domestic industrial capacity. The initiative forms part of a broader policy direction focused on reducing reliance on imported fossil fuels while accelerating the country’s transition towards cleaner energy systems.
According to a report by ANTARA News, the government intends to achieve the target through a 100‑gigawatt electrification programme expected to be completed within two years. The plan includes shutting down 13 diesel‑fired power plants operated by state electricity company PT PLN that currently consume large volumes of imported fuel.
Electrification to Reduce Fuel Consumption
The retirement of diesel power plants is projected to reduce fuel demand significantly. Government estimates suggest the closures could cut diesel use by as much as 200,000 barrels per day.
Indonesia currently imports around one million barrels of fuel each day. Reducing diesel consumption at power plants alone could therefore lower import dependence by roughly 20 per cent. The electrification programme is intended to replace diesel generation with more efficient power systems, helping to stabilise domestic supply while reducing costs associated with imports.
Expanding Renewable Energy and Alternative Fuels
Alongside electrification, the government is encouraging the development of renewable and alternative fuels. These include converting palm oil and used cooking oil into aviation fuel, part of a broader strategy to diversify energy sources and reduce reliance on conventional fossil fuels.
The policy direction aligns with wider national efforts that emphasise technology and innovation in building a more sustainable economy. Recent discussions across government and industry have highlighted how smart technologies and innovation are increasingly viewed as critical tools for advancing sustainability and strengthening long‑term resilience.
To support this transition, the administration plans to allocate significant investment to processing centres and refinery infrastructure. Expanding domestic processing capacity is intended to improve energy security while supporting industrial growth linked to the energy transition.
Electric Vehicle Manufacturing and Domestic Industry
The announcement was made during the inauguration of an electric commercial vehicle assembly facility in Magelang, Central Java. The plant is expected to play a role in strengthening Indonesia’s domestic electric vehicle ecosystem and supporting the gradual shift toward cleaner transportation systems.
The facility aims to produce up to 10,000 buses annually. Authorities also intend to progressively raise the domestic component level, known locally as Tingkat Komponen Dalam Negeri (TKDN), to 80 per cent. Increasing local manufacturing capacity is viewed as an important step in developing national industry while reducing dependence on imported technologies.
Indonesia’s approach reflects a broader policy framework that links technological development, industrial capability and sustainability goals. Similar themes are visible in national discussions about digital readiness and resilience, including efforts to ensure that emerging technologies contribute to long‑term economic stability and development, as highlighted in analysis of Indonesia’s strategy for balancing technological growth with national preparedness.
By combining electrification, renewable fuel production and domestic manufacturing expansion, policymakers are seeking to reduce import dependence while building a more resilient national energy system.
