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View all search resultsThe energy minister has reinforced a plan to gradually reduce diesel imports over the first two months of 2026 toward a full ban in March, pointing to sufficient domestic supply and a potential for combining increased local output with hiking the national biodiesel program to 50 percent.
Starting April 2026, the government will not roll out diesel fuel import allocations for private companies, as it anticipates a surplus of approximately 4 million kiloliters of the fuel driven by the upgraded Pertamina refinery and B50 biodiesel policy.
The administration of Prabowo Subianto is reforming the disbursement of fuel and electricity subsidies to improve state budget efficiency. These subsidies have long been criticized for disproportionately benefiting upper-middle-class households, who consume more energy, rather than the poor and vulnerable groups they are intended to support. As a result, the government now aims to better target subsidy distribution and reduce its long-standing fiscal burden. The urgency to optimize subsidy spending has also grown amid rising expenditures for several major government programs.
The government plans to form 150 new battalions each year starting in 2026 to guard vital state assets, such as oil refineries, as part of an ambitious expansion of the Indonesian Military (TNI), a move that once again raises concerns about deeper military encroachment into civilian affairs.
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