WNAM REPORT: Indonesian Energy and Mineral Resources Minister Bahlil Lahadalia announced plans to reduce fuel imports from Singapore, citing less competitive prices than those offered by Middle Eastern countries.
“We are starting to think that we will import oil from other countries, not from that country (Singapore),” Bahlil stated here on Friday.
The minister noted that around 54-59 percent of Indonesia’s fuel imports currently come from Singapore.
When comparing fuel prices, Bahlil found that imports from Singapore are similarly priced to those from the Middle East, despite Singapore’s closer proximity to Indonesia.
To facilitate the shift away from Singapore, the government has begun constructing docks capable of accommodating larger import ships. Until now, fuel imports from Singapore have relied on smaller ships.
“That is one of the reasons we build a bigger one (building dock) to accommodate fuel imports in one load. Thus, the port’s size is increased, but its depth must also be maintained,” Bahlil explained.
Beyond price concerns, Bahlil cited geopolitical and geoeconomic considerations as additional reasons for reducing fuel imports from Singapore.
Bahlil emphasized the need for Indonesia to maintain a balance in its fuel import sources.
He stated that the transition away from Singapore will be gradual, with the ultimate goal of completely halting fuel imports from the country.
“In fact, importing fuel from Singapore should be cheaper, considering our very close distance,” he concluded.
