Singapore Becomes Indonesia's Top Fuel Supplier from 2017 to 2022

TEMPO.CO, Jakarta - Energy and Mineral Resources Minister Bahlil Lahadalia has announced that the government plans to halt fuel imports from Singapore. He highlighted that more than half, or around 54 percent, of Indonesia’s total fuel imports come from the country.

"Singapore is not an oil producer, yet we are buying from them," Bahlil said during a discussion on The Direction of Indonesia’s Geostrategic and Geopolitical Policy, hosted by the central executive board of the Golkar Party in Jakarta on Thursday, May 8.

Bahlil also revealed that approximately 34 percent of the fuel produced in Singapore is sold to Indonesia, even though the country lacks significant oil reserves. He considered this situation a weakness in Indonesia's national energy strategy.

"The price of fuel from Singapore is on par with that from the Middle East. This is nothing to be proud of. That is why I have decided that within the next six months, Indonesia must stop importing fuel from Singapore," he stated.

Citing data from Statistics Indonesia (BPS), from 2017 to 2022, Singapore was the leading supplier of fuel to Indonesia. Import volumes from Singapore peaked in 2018 at 17.85 million tons. The volume declined afterward, particularly during the COVID-19 pandemic in 2020, falling to just 10.47 million tons.

Although the trend declined compared to the start of the period, import figures from Singapore in 2022 remained relatively high at 10.95 million tons. These figures demonstrate Indonesia's continued reliance on Singapore for fuel supplies and highlight Singapore's role as a dominant energy trading hub in Southeast Asia.

BPS has not released country-specific fuel import data for the years 2023 through 2025. As for the 2023 fuel import situation, Minister Bahlil previously pointed out a significant imbalance between domestic oil production and imports. He stated that Indonesia's national oil production only reached 221 million barrels, while imports totaled 297 million barrels, consisting of 129 million barrels of crude oil and 168 million barrels of refined fuel.

In 2022, national fuel consumption was recorded at around 505 million barrels. Of that amount, the transportation sector consumed 248 million barrels (49 percent), the industrial sector 171 million barrels (34 percent), the power sector 38.5 million barrels (8 percent), and aviation 28.5 million barrels (6 percent). "As a result, oil imports drained as much as Rp396 trillion from the country's foreign reserves," Bahlil said in a written statement.

To reduce imports, he said, the government is preparing three main strategies. First, optimizing production through technology, such as at the Banyu Urip field, where output rose from just 90,000 to 100,000 barrels per day (BOPD) to 140,000 to 160,000 BOPD thanks to ExxonMobil's technology.

The second strategy is to reactivate idle wells. Of the 44,985 wells in Indonesia, 16,990 are currently inactive. However, not all of them are suitable for reactivation due to technical, economic, or safety factors.

Third, the government will encourage oil and gas exploration in eastern Indonesia, which is believed to have promising reserve potential. Bahlil said the focus areas include Seram, Buton, the Aru-Arafura Sea, Warim, and Timor. "The government will accelerate the development of these blocks through attractive cooperation schemes and incentives," he said.

Riri Rahayu contributed to the writing of this article.

Editor’s Choice: Indonesia Looks to Middle East for Oil, Citing 'Dignity' Over Singapore Imports

Click here to get the latest news updates from Tempo on Google News

Top 10 Happiest Cities in the World in 2025

2 jam lalu

Indonesia Looks to Middle East for Oil, Citing 'Dignity' Over Singapore Imports

2 hari lalu

Singapore Holiday 2025 Update: Only 2 Long Weekends Remaining

3 hari lalu

Tracking Indonesia's Trade Performance with India and Pakistan

4 hari lalu

Energy Ministry Says Mineral and Coal Sectors Remain Undisturbed by US Tariffs

4 hari lalu

Prabowo Wants Indonesia to Achieve Energy Self-Sufficiency; Blames Former Mentors

5 hari lalu

Trump Ends Exemption for Low-Value Chinese Imports

6 hari lalu

Singapore's Ruling Party PAP Wins Election in Landslide

8 hari lalu

Savor the Flavors: 10 Must-Visit Eateries in Singapore

8 hari lalu

Ten Exciting Things to Do in Changi Airport: Waterfalls, Bouncing Nets, and Luxury Shops

8 hari lalu