Indonesia Looks to Middle East for Oil, Citing 'Dignity' Over Singapore Imports

TEMPO.CO, Jakarta - Indonesia's Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, talked about the government's plans to discontinue oil imports from Singapore. He pointed out that 54 percent of Indonesia's oil imports originate from the island nation.

"Where do we import our oil from? 54 percent of our oil imports are from Singapore. A country that doesn't have oil, but we buy from there," Bahlil remarked during a discussion titled "Indonesia's Geostrategic and Geopolitical Policy Direction," organized by the Central Executive Board (DPP) of the Golkar Party in Jakarta on Thursday, May 8, 2025.

He further elaborated that while Singapore lacks its own oil production, its fuel exports to Indonesia account for 34 percent of its total output. "34 percent of its market is in Indonesia. The price is the same as in the Middle East. This is a humiliating strategy, so I decided that we will not import oil from Singapore for the next six months," Bahlil declared.

"I said, it's more dignified that we get oil from the Middle East because it is an oil-producing country, rather than importing from a country that has never produced oil (Singapore)," he asserted.

He also voiced his astonishment at the previous Indonesian government's policy of sourcing fuel from Singapore. In his opinion, a strategic approach is essential for safeguarding national sovereignty, particularly concerning the procurement of fuel from international sources.

"It's like our brains don't know: did we not finish school or what? I'm confused, too. These are ideas that the Golkar Party will fight for, for the sake of the nation's sovereignty in geopolitics and geostrategy," stated Bahlil, who also serves as the General Chair of the Golkar Party.

In response, Mulyanto, an Advisor to the Indonesian Scientists and Technologists Community (MITI), stressed that the Energy Minister's plan to halt fuel imports from Singapore requires careful consideration, supported by thorough technical and economic studies.

"It should not be solely driven by excessive ethno-nationalism," Mulyanto stated in a press release received by Tempo on Friday, May 9, 2025.

Furthermore, he suggested that this move could lead the public to suspect a hidden agenda to manipulate commodity politics and facilitate a change in the "players" within the oil import sector. "The public might perceive this as merely a ploy," Mulyanto cautioned.

Mulyanto highlighted Singapore's geographical proximity to Indonesia as an advantage. He also pointed out that Singapore reciprocally imports gas and electricity from Indonesia.

Moreover, Singapore has a crude oil refining capacity of 1.5 million barrels per day, significantly higher than Indonesia's 1 million barrels per day. The oil prices in Singapore are also considered relatively competitive.

"Pertamina has the ability to make the imported oil prices transparent to the public," stated a member of the Indonesian House of Representatives Energy Commission for the 2019-2024 period.

However, regardless of the ongoing discussion about ceasing fuel imports from Singapore, Mulyanto emphasized that the government must prioritize increasing declining domestic oil production and upgrading existing oil refineries. He argued that these actions represent concrete steps toward reducing Indonesia's reliance on fuel imports.

Riri Rahayu and Hendrik Yaputra contributed to this article.

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