Will diversifying fuel imports be enough to fix Indonesia’s energy shortfall?
Indonesia is looking beyond Singapore for petrol supplies as it seeks to reduce its dependence on a single source, but analysts say diversifying imports will do little to address the country’s fuel production shortfall without faster refinery modernisation and investment in alternative fuels. Indonesia has long sourced petroleum products from Singapore, including RON 90 petrol, which has a…
Indonesia is considering sourcing petrol from countries other than Singapore to reduce its dependence on a single supplier. The country has been importing RON 90 petrol, a high-octane petrol marketed as Pertalite, primarily from Singapore due to its proximity, advanced blending facilities, and extensive storage capacity. However, Indonesia's refining capacity is insufficient to meet the country's growing domestic demand, with the current capacity at around 1 million barrels per day while daily consumption requires 1.6 million barrels.
Singapore currently covers this gap with up to 400,000 barrels per day. Indonesia's Minister of Energy and Mineral Resources, Bahlil Lahadalia, emphasized the need to diversify fuel sources, including China and India, to mitigate potential risks. The recent shift in focus highlights the urgency to address Indonesia's fuel production gaps, as its refineries struggle to meet the country's energy needs.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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