Indonesia is set to diversify its gasoline import sources by seeking supplies from India and China, aiming to reduce its dependence on Singapore, a key regional oil refining hub. This move was announced by Indonesian Energy Minister Bahlil Lahadalia, who stated that he would be traveling to India, China, and other countries to explore potential supply agreements. The government, under President Prabowo Subianto’s leadership, is focused on establishing long-term contracts to bolster the country’s fuel security.
Currently, Indonesia has been importing RON 90 gasoline from an unnamed neighboring country. Historically, Singapore has played a significant role in supplying Indonesia’s gasoline, which underscores the importance of diversification in Jakarta’s energy strategy. This development occurs amidst escalating tensions between Indonesia and Singapore over energy supplies. Recently, Indonesia reduced its pipeline natural gas exports to Singapore by about 31 billion British thermal units per day.
Bahlil emphasized that this reduction remains within the contractual limits, asserting that Indonesia has adhered to its commitments. In contrast, Singapore has described the reduction as a minor portion of its daily gas demand, which is not anticipated to significantly impact electricity prices. Nonetheless, Singaporean Prime Minister Lawrence Wong has urged gas suppliers to fulfill their contractual duties.
Amid these tensions, Singapore’s Foreign Minister Vivian Balakrishnan is expected to meet with his Indonesian counterpart, Arrmanatha Nasir, as both nations work to manage the latest energy-related disagreements. Indonesia’s initiative to secure alternative gasoline suppliers is part of a broader effort to diversify energy sources, enhance domestic energy security, and lessen reliance on a single trading partner.