Indonesia has slashed its crude oil imports by 750,000 barrels per day, a significant contraction driven by the full implementation of its mandatory B50 biodiesel program.
Energy and Mineral Resources Minister Bahlil Lahadalia confirmed the reduction, noting that imports have fallen from a baseline of approximately 1 million barrels per day.
The shift marks a tangible realization of the policy announced by President Prabowo Subianto, which mandates a 50 percent vegetable oil blend in diesel fuel, making Indonesia the first nation globally to enforce such a high biofuel ratio.
The decline in import volumes represents a material shift in the global crude demand landscape.
As the world's largest palm oil producer, Indonesia is leveraging its domestic agricultural output to displace fossil fuel consumption.
For traders monitoring Asian demand drivers, the 750,000 bpd cut signals that structural demand destruction in key emerging markets is accelerating, potentially offsetting growth elsewhere in the region.