Indonesia to Seek Gasoline Supplies from India and China to Reduce Dependence on Singapore
Indonesia's energy minister will travel to India and China to negotiate long-term gasoline contracts as the country looks to diversify its fuel imports away from Singapore.
Jakarta – Indonesia's energy minister Bahlil Lahadalia announced plans to visit India and China in the coming week to secure additional gasoline supplies and reduce reliance on Singapore, which currently provides more than half of Indonesia's gasoline imports. Bahlil said the trips aim to establish long-term contracts at the request of President Prabowo Subianto, though he did not disclose the volume of fuel Indonesia intends to purchase.
The move follows a recent reduction in Indonesia's pipeline gas exports to Singapore by about 31 billion British thermal units per day, a cut that Bahlil said remains within the contractual allowance of 91-92 BBTU per day. "The 31 BBTU cut still falls under the contract’s allowable limit," he told reporters.
Singapore's foreign minister Vivian Balakrishnan is scheduled to meet his Indonesian counterpart Arrmanatha Nasir to discuss the changes. Singapore has indicated that the reduction represents roughly 2% of its daily gas demand and is not expected to affect electricity prices, while Prime Minister Lawrence Wong has urged gas suppliers to honor their commitments.