Industry Ministry encourages Buton asphalt optimization for self-sufficiency

The Industry Ministry is encouraging the optimization of the utilization ashpalt from Buton Island, Southeast Sulawesi Province to support the achievement of national asphalt self-sufficiency. That encouragement was followed up with the Industry Ministry Chemical, Pharmaceutical, and Textile Industry Directorate-General's Cement, Ceramics, and Non-metallic Mining Materials Manufacturing Industry Directorate issuing he 2024 Buton Asphalt Downstream Industry Roadmap.

Asphalt from Buton is a mixture of naturally occuring bitumen, a form of petroleum; and limestone found on Buton Island, Southeast Sulawesi. Buton asphalt resources reached 576.87 million tons with reserves of 218.87 million tons in 2023 based on Energy and Mineral Resources Ministry data.

"This potential makes Buton asphalt a national asset as an additive or substitute for asphalt [refined from] petroleum," said Industry Minister Agus Gumiwang Kartasasmita.

He added that Buton's asphalt potential opens up great opportunities for the domestic asphalt industry.

Currently, there are 34 Buton asphalt processing factories in Indonesia spread across various islands. These factories have a production capacity of 1.5 million tons, which is equivalent to 324.000 tons of petroleum asphalt. However, the utilization of each type of Buton asphalt product in the last four years has not reached 15 percent.

To overcome that challenge, the Industry Ministry published the 2024 Buton Asphalt Downstream Industry Roadmap. The vision is to make Buton asphalt the host of asphalt supply for national self-sufficiency in 2030. Said vision has three main missions, namel6 increasing utilization, developing a pure asphalt industry, and growing an industrial ecosystem based on green industry.

As a strategic step, the Industry Ministry facilitates the participation of the Buton asphalt industry in business matching activities. The ministry also proposed a review of the compulsory national industrial standards (SNI) and developing pure extraction technology. The Industry Ministry also coordinates with the Home Affairs Ministry and the Public Works Ministry on the use of the regional Special Allocation Fund (DAK) to support the utilization of Buton asphalt throughout Indonesia.

"With this strategic step, the Industry Ministry is optimistic that the Buton asphalt industry will develop rapidly," said Chemical, Pharmaceutical, and Textile Industry Director-General Taufiek Bawazier.

He added that the effort would reduce dependence on imports and increase the competitiveness of the domestic asphalt industry.