Indonesia seeks new fuel suppliers to reduce import dependency

Indonesia is actively seeking to diversify its fuel supply sources to reduce reliance on Singapore, which currently provides between 54% and 59% of the nation's fuel imports. Energy and Mineral Resources Minister Bahlil Lahadalia announced plans to visit India and China to secure long-term supply certainty, particularly for RON 90 fuel (Pertalite).

This strategic move follows Indonesia's decision to cut gas exports to Singapore by 31 billion British thermal units per day, approximately 8% of total shipments. The government is anticipating potential retaliatory measures from Singapore that could affect energy supplies.

Despite these shifts, Minister Bahlil assured that national fuel reserves remain stable. Pertalite stocks are estimated at 16 to 18 days, while Solar and higher-octane fuels maintain a 20-day reserve. Furthermore, following directives from President Prabowo Subianto, the government has committed to maintaining current subsidized fuel prices for Pertalite and Biosolar through the end of 2026, despite rising global oil prices.