Jakarta – The government is encouraging diversification of energy import sources, focusing on shifting supplies from Singapore to Middle Eastern countries that are considered more competitive and efficient.
Minister of Investment/Head of BKPM, Bahlil Lahadalia, in a press conference on Friday, 9 May, said that more than half of Indonesia’s imported fuel needs had come from Singapore. “Our fuel imports, 54 to 59 per cent, still come from Singapore. After I checked, it turns out that the price from the Middle East is not much different, it can even be cheaper,” said Bahlil.
According to him, this condition opens up space to shift supply sources to other countries that offer better efficiency in terms of volume and logistics. This diversification of supply is not just a matter of price, said Mr Bahlil, but an effort by the government to target long-term energy security and strengthen its bargaining position in the global supply chain.
“This is not about us not liking Singapore. This is purely about efficiency and independence. If we can get the same price or cheaper elsewhere, why not?” he said.
Bahlil explained that this move also aligns with the government’s long-term strategy of reducing the import burden and optimising the management of national energy reserves.
Large jetties are key to the transition
This transition cannot be done instantly. According to Bahlil, PT Pertamina (Persero) is currently completing the construction of supporting infrastructure, including a special jetty that can accommodate large tankers from the Middle East region.
“From Singapore, the ships used are small. Now, we are building docks and harbours that can accommodate large ships, so that we can load a lot in one transport,” he explained.
According to Bahlil, the special jetty is designed with a special depth to ensure it can serve supertankers and reduce distribution costs due to fewer loading and unloading frequencies. (Hartatik)
Banner photo: Image generated by OpenAI’s DALL·E via ChatGPT (2024)
