The oil-producing nation could redirect up to 60 per cent of its fuel imports away from Singapore over the next six months as part of a broader diversification strategy, Energy and Mineral Resources Minister Bahlil Lahadalia told reporters on May 9.
“It is not only a matter of price but also geopolitical issues. We need to have a balance with other countries,” Bahlil said, adding that Indonesia aimed to progressively reduce imports from Singapore to zero “some day”.
The minister criticised Singapore’s pricing practices, arguing that despite its proximity, the city state sold fuel to Indonesia at prices similar to those offered to buyers in the Middle East.
“[Singapore] does not have oil, but we buy from there. Of the total production, 34 per cent of the market is in Indonesia, [yet] the price is the same as the Middle East. I say this is a shameful strategy,” Bahlil said.
Despite not producing crude oil, Singapore is a major refining hub and a key supplier of petroleum products across the region. More than half of Indonesia’s oil imports now come from the city state, as declining output has left it unable to meet domestic demand.
