Indonesia is planning to reduce its dependence on Singapore for gasoline imports by seeking alternative supplies from India and China. Indonesian Energy Minister Bahlil Lahadalia announced on Monday that he intends to travel to these countries to negotiate supply agreements as part of a broader strategy to diversify energy sources and strengthen the nation’s fuel security under President Prabowo Subianto’s direction.
Historically, Singapore has been a significant supplier of gasoline to Indonesia, primarily providing RON 90 gasoline. The move to diversify suppliers is driven by recent tensions between Indonesia and Singapore over energy supplies. Indonesia has decreased its natural gas exports to Singapore, which amounted to a reduction of about 31 billion British thermal units per day. Despite this reduction, Bahlil emphasized that Indonesia remains within the limits of existing contracts and has not breached its commitments.
In response, Singapore has indicated that the reduction is a minor portion of its overall daily gas demand and is not expected to have a significant impact on electricity prices. Nonetheless, Singaporean Prime Minister Lawrence Wong has called for gas suppliers to adhere to their contractual obligations. Diplomatic efforts are ongoing, with Singapore’s Foreign Minister Vivian Balakrishnan expected to meet his Indonesian counterpart, Arrmanatha Nasir, to address these energy-related tensions.
Indonesia’s push to secure gasoline supplies from India and China reflects its broader goal of enhancing domestic energy security by reducing reliance on a single trading partner. As Indonesia explores long-term contracts with new partners, the initiative highlights Jakarta’s commitment to diversifying its energy import sources and mitigating risks associated with over-dependence on Singapore.