Indonesia pushes coal-to-gasoline plans to cut fuel imports

Indonesia's Ministry of Energy and Mineral Resources will follow up on President Prabowo Subianto's plan to process coal into gas and liquid fuels, as part of efforts to reduce import dependence amid uncertain global geopolitical conditions, Minister Bahlil Lahadalia said on September 21.

The plan involves coal-to-liquid technology, which converts coal into liquid fuels such as gasoline or diesel. Prabowo announced the initiative on September 19, saying Indonesia would produce gasoline from coal after succeeding in developing diesel from crude palm oil, including the B50 blend.

Bahlil said the directive stems from the need to maximize Indonesia's energy potential, noting that coal gasification technology has been developed in countries including China, and that several companies have offered to collaborate.

Bahlil said Indonesia's low-calorie coal potential is enormous, and the ministry will follow up on every directive to increase energy security using domestic sources. "The goal is to eliminate imports and ensure our foreign exchange is domestic," he said.

Prabowo previously said fuel production from local resources is a necessity given global uncertainty. He noted Indonesia has stopped importing diesel from abroad starting July 1, 2026, as domestic production has met national demand.

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