Jakarta, Indonesianpost.com – Indonesian Energy and Mineral Resources Minister Bahlil Lahadalia revealed plans to cut fuel imports from Singapore, citing the less competitive pricing compared to Middle Eastern countries.
“We are considering shifting our oil imports to other countries, rather than Singapore,” Bahlil stated on Friday.
Currently, 54-59 percent of Indonesia’s fuel imports come from Singapore. However, Bahlil pointed out that the prices of fuel from Singapore are similar to those from the Middle East, despite Singapore’s geographic proximity to Indonesia.
To support this shift, the government is constructing larger docks to accommodate bigger import ships, as fuel imports from Singapore currently rely on smaller vessels.
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“The expansion of the dock will allow us to accommodate larger shipments in one load, enhancing the port’s capacity while maintaining its depth,” Bahlil explained.
In addition to pricing concerns, geopolitical and geo economic factors are also driving the decision to reduce reliance on Singapore for fuel imports.
Bahlil emphasized the importance of diversifying Indonesia’s fuel import sources, stating that the transition away from Singapore will be gradual, with the ultimate goal of phasing out imports from the country entirely.
“Given our proximity, importing fuel from Singapore should be cheaper,” he concluded. (BL/ANTARA)