Key View
- Indonesia’s long-term fuel demand growth is expected to slow as the government seeks to diversify away from fossil fuels.
- Demand for transport fuels showed slower growth rates due to the government’s ongoing efforts to cut fuel subsidies.
- Indonesia’s fuel consumption faces downside risks stemming from various sources including biofuels, fuel substitution and decarbonisation initiatives.
- The government is betting big on biofuels as part of long-term strategy to enhance fuel supplies from domestic sources and reduce dependence on imports.
