Indonesia is seeking to diversify its gasoline imports by securing additional supplies from India and China, aiming to reduce its reliance on Singapore, a significant regional oil refining hub. Indonesian Energy Minister Bahlil Lahadalia announced on Monday that he plans to visit India, China, and other countries to explore potential supply agreements as part of an effort to enhance the nation’s fuel security under the direction of President Prabowo Subianto.
Historically, Singapore has been a major supplier of gasoline to Indonesia, particularly RON 90 gasoline. The move to diversify comes amid escalating tensions between Indonesia and Singapore concerning energy supplies. Recently, Indonesia reduced its natural gas exports to Singapore by approximately 31 billion British thermal units per day, a decision Bahlil asserted was within the limits of existing contracts and did not constitute a breach of commitments.
Singapore, for its part, has downplayed the impact of the reduction on its energy needs, with officials stating it represents a minor portion of the country’s daily gas demand and is unlikely to significantly affect electricity prices. Nonetheless, Singaporean Prime Minister Lawrence Wong has called on gas suppliers to adhere to their contractual obligations.
The developments have prompted diplomatic engagement between the two countries, with Singapore’s Foreign Minister Vivian Balakrishnan expected to meet Indonesian counterpart Arrmanatha Nasir to address the latest disagreements related to energy.
Indonesia’s strategy to secure alternative gasoline suppliers reflects a broader objective to diversify its energy sources, strengthen domestic energy security, and reduce dependency on a single trading partner. This initiative is part of a larger effort to safeguard the country’s energy future amid regional geopolitical dynamics.