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Bisnis | Ekonomi - Posted on 18 December 2025 Reading time 5 minutes
President Prabowo Subianto has set a target for Indonesia to stop importing gasoline starting in 2029, following the implementation of ethanol as a fuel blend.
He stated that the policy is part of Indonesia’s broader vision to achieve national energy self-sufficiency. According to Prabowo, energy independence would significantly reduce the state’s financial burden, considering that Indonesia’s annual fuel import bill currently reaches approximately Rp520 trillion.
Prabowo explained that the savings generated from reducing fuel imports could be redirected toward regional development. He estimated that each regency or city could potentially receive budget allocations of up to Rp1 trillion per year.
During his briefing to regional leaders from Papua and the Executive Committee for the Acceleration of Papua’s Special Autonomy Development at the State Palace on Tuesday, December 16, 2025, Prabowo stated that Indonesia aims to stop importing diesel fuel starting next year, and within four years, gasoline imports are also expected to be eliminated.
At the same time, Prabowo encouraged the expansion of energy-related commodities such as palm oil and sugarcane in Papua to support both energy self-sufficiency and food security.
He emphasized that Papua holds significant potential for developing bioenergy feedstocks capable of producing fuel and ethanol.
Prabowo expressed his hope that palm oil, sugarcane, and cassava cultivation would be expanded in Papua to produce fuel and ethanol, enabling all regions to become self-reliant within the next five years.
Through these initiatives, Indonesia is expected not only to achieve food self-sufficiency but also to substantially reduce the trillions of rupiah spent annually on energy subsidies.
He added that utilizing solar and hydropower in the cultivation of palm oil, cassava, and sugarcane could potentially save the country hundreds of trillions of rupiah each year.
Source: cnbcindonesia.com
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