October 2018 Solar Imports Surge 78%

The Indonesian government expanded the mandatory blending of 20% palm oil with diesel fuel (B20) starting September 1st, 2018. This means that diesel fuel available on the market contains palm oil, thus reducing import demand. However, diesel imports in October actually increased compared to the previous month due to several remaining obstacles.

According to data from the Central Statistics Agency (BPS), Indonesia's diesel imports in October 2018 surged by 244,600 tons (78%) to 558,200 tons compared to the previous month, and also increased by 69% compared to October 2017. Diesel imports reached their highest point at 693,000 tons in August, a month before the expansion of the B20 mandate. The lowest point was in September, when the expanded B20 policy was implemented.

For information, the volume of diesel imports from January to October 2018 decreased by 0.76% to 4.56 million tons compared to the same period the previous year (4.6 million tons). However, the value increased by 29.11% to US$2.87 billion from US$2.22 billion. The rise in oil prices to US$80/barrel is one of the reasons for the increased value of diesel imports this year.