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REPUBLIKA.CO.ID, JAKARTA -- The government plans to switch the country of import of Fuel Oil (BBM). Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia said that about 54—59 percent of Indonesia's fuel imports come from Singapore.
His team then examined fuel prices in the global market. According to Bahlil, fuel tariffs in Singapore are similar to those in Middle Eastern countries. The transition process will be phased in over the next few months.
“We are starting to think, maybe—not the word maybe anymore—it is almost certain, we will take oil from another country, which is not from that country,” Bahlil said in his Jakarta office on Friday (9/5/2025).
Bahlil explained that Pertamina is currently building large docks to support the delivery of imported fuel. “Because from Singapore, the boats are small. That's also one reason. So we build a big one, so that one transport is not a problem,” he said.
In addition to Middle Eastern countries, according to Bahlil, Indonesia will also buy oil from the United States. Fuel imports from the US are part of bilateral negotiations between the two countries.
“We have an agreement with the United States. One of the ones we offer is the purchase of some products from them, among them fuel, crude oil, and LPG,” said Bahlil, who is also the General Chairman of the Golkar Party.
He said the reduction in fuel imports from Singapore currently ranges from 50 to 60 percent. According to him, it is not possible to exclude the possibility of the figure becoming zero percent in the future as the process of transferring the supplier country proceeds.
Bahlil insists that in the import-export business there are no time-based contracts. As long as the goods are available, negotiations can take place. He also revealed additional reasons behind this government policy.
“Because of the neighboring country, fuel from Singapore should be cheaper. But since the rates are the same, then this decision was taken. In addition, there are also geopolitical and geoeconomic reasons. We have to create a balance for the others,” he stressed.
He added that the policy was the result of periodic evaluations. “Since I became Minister of ESDM, I have continued to evaluate imported products, including fuel,” he said.
