Indonesia is set to diversify its gasoline imports by seeking additional supplies from India and China, as it aims to reduce its reliance on Singapore, a major oil refining hub in the region. Indonesian Energy Minister Bahlil Lahadalia announced plans to travel to these countries to explore potential supply agreements, under the directive of President Prabowo Subianto. The goal is to establish long-term contracts that would bolster the country’s fuel security.
Historically, Singapore has been a significant supplier of gasoline to Indonesia, specifically RON 90 gasoline, which Indonesia has been importing from a neighboring country that Bahlil did not directly name. This move to diversify suppliers is part of Jakarta’s broader energy strategy to enhance its energy security and reduce over-dependence on a single trading partner.
These developments come amid rising tensions between Indonesia and Singapore over energy supplies. Indonesia recently cut its pipeline natural gas exports to Singapore by about 31 billion British thermal units per day. Bahlil emphasized that this reduction is within the limits allowed by existing contracts, insisting that Indonesia has not breached any commitments.
Singapore, on the other hand, has stated that the reduction is a minor portion of its daily gas demand and is unlikely to substantially impact electricity prices. Nonetheless, Singaporean Prime Minister Lawrence Wong has called on gas suppliers to adhere to their contractual obligations.
In light of the current energy-related disagreements, Singapore’s Foreign Minister Vivian Balakrishnan is expected to meet with his Indonesian counterpart, Arrmanatha Nasir, to address these issues. Indonesia’s strategy to secure alternative gasoline sources reflects its wider goal of diversifying energy sources and enhancing domestic energy security.
