In a strategic move to bolster its energy security, Indonesia is seeking to diversify its gasoline imports by securing supplies from India and China. This development comes as Indonesia aims to lessen its reliance on Singapore, a key regional oil refining hub that has traditionally been a major supplier of Indonesia’s gasoline needs.
Indonesian Energy Minister Bahlil Lahadalia announced plans to travel to India, China, and other potential supplier countries to explore new supply agreements. Under President Prabowo Subianto’s directive, the government aims to establish long-term contracts to ensure a stable and secure energy supply for the nation.
Indonesia’s current gasoline imports include RON 90 gasoline from an unnamed neighboring country, though Singapore has historically been a significant source. This shift in strategy coincides with recent tensions between Indonesia and Singapore concerning energy supplies. Notably, Indonesia has reduced its natural gas exports to Singapore by about 31 billion British thermal units per day, a move Bahlil insists complies with existing contract terms.
While Singapore has downplayed the impact of this reduction on its daily gas demand and electricity prices, Singaporean Prime Minister Lawrence Wong has emphasized the importance of honoring contractual obligations. Discussions to address these energy-related disagreements are expected, with Singapore’s Foreign Minister Vivian Balakrishnan planning to meet his Indonesian counterpart, Arrmanatha Nasir.
Indonesia’s initiative to secure alternative gasoline suppliers is part of a broader strategy to diversify its energy sources and reduce dependency on a single trading partner. This approach reflects Jakarta’s commitment to strengthening its domestic energy security amid evolving regional energy dynamics.