Indonesia Plans to Halt Fuel Imports from Singapore, Eyes US Market

JatimVoice.com – The Indonesian government is preparing to stop importing fuel from Singapore, a move confirmed by Energy and Mineral Resources Minister Bahlil Lahadalia. Currently, Indonesia sources 54% of its fuel needs from Singapore, despite the city-state having no crude oil production of its own. Instead, Singapore serves as a major refining and supply hub for the region, including Indonesia.  

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According to an analysis by Sentosa Shipbrokers, Indonesia's domestic fossil fuel production has declined over the years, forcing the country to import around 290,000 barrels of refined fuel per day from its smaller neighbor. Most of these imports consist of gasoline and diesel.  

"If this plan materializes, it will significantly impact the tanker market," Sentosa told *The Straits Times* on Thursday (May 14, 2025). Sentosa Shipbrokers is a Singapore-based vessel chartering and brokerage firm.  

Minister Bahlil stated that since taking office, he has conducted evaluations on fuel imports and found that prices from Singapore were comparable to those from the Middle East.  

"After reviewing, the prices are the same as those from Middle Eastern countries. So, we are now considering—or rather, it’s almost certain—that we will shift our fuel imports to other countries instead," Bahlil said during a press briefing at the Energy Ministry on Thursday (May 14, 2025).  

He aims to implement the import shift within the next six months. To facilitate this, state-owned Pertamina is constructing a larger dock to accommodate jumbo-sized tankers.  

"Singapore uses smaller vessels, which is one of the reasons for this move. We’re building bigger infrastructure to allow for larger shipments without logistical issues. This means expanding the port and maintaining sufficient depth," he explained.  

Additionally, Bahlil revealed that Indonesia plans to redirect some fuel imports to the United States. This decision is part of Jakarta’s negotiation strategy in response to high tariffs imposed by US President Donald Trump.  

"Yes, partially. We already have an agreement with the US, which includes purchasing certain products from them, such as fuel, crude oil, and LPG," he said.