Ad Banner
Advertisement by Open Privilege
Singapore

Indonesia shifts fuel imports from Singapore to US amid tariff negotiations

Image Credits: UnsplashImage Credits: Unsplash
  • Indonesia plans to shift up to 60% of its fuel imports from Singapore to the US as part of negotiations to address US-imposed tariffs.
  • The move aims to strengthen trade ties with the US, including a proposed $10 billion increase in energy imports (fuel, crude oil, and LPG).
  • Pertamina, Indonesia’s state energy firm, may need to expand storage capacity to accommodate the shift in fuel supply sources.

[WORLD] Indonesia is preparing to reroute a portion of its fuel imports from Singapore to the United States as part of broader negotiations aimed at addressing steep US-imposed tariffs, Energy Minister Bahlil Lahadalia announced on May 9.

The United States has levied a 32 per cent tariff on Indonesian exports, though enforcement has been delayed until July to allow for bilateral talks. The tariffs are rooted in ongoing trade disputes, particularly Washington’s concerns over Jakarta’s nickel export policies, which the US says are distorting global markets.

In an effort to rebalance trade relations and secure more favorable terms, Indonesia is looking to adjust its fuel sourcing strategy. Analysts suggest the move also reflects Jakarta’s intent to diversify its energy partnerships amid shifting global supply chains.

Minister Lahadalia stated that the transition away from Singapore would be phased in over time, with as much as 60 per cent of fuel imports potentially redirected to the US in the early stages.

Singapore has traditionally served as a central hub for refined fuel in the region. However, rising costs and evolving geopolitical dynamics are pushing Indonesia to explore alternative suppliers. With increased oil output and competitive pricing, the US has emerged as an attractive option. Nonetheless, industry observers warn that logistical hurdles—such as extended shipping distances and elevated transport costs—may limit the economic advantages.

“It is almost certain that we will take fuel from other countries, not from Singapore,” Lahadalia told reporters, adding that the shift could be implemented within six months.

The move is part of a broader proposal presented by Indonesia to the US as a potential pathway to ease the tariff dispute. It complements ongoing efforts by Jakarta to deepen economic ties with Washington, including talks on critical minerals and renewable energy cooperation.

Indonesia has expressed intentions to raise its US energy imports to approximately US$10 billion (S$13 billion), which would include refined fuel, crude oil, and liquefied petroleum gas. As part of the plan, Indonesia is aiming to increase crude oil imports from the US tenfold. Currently, only around 4 per cent of Indonesia’s crude imports originate from the US.

Such a shift could reshape regional trade dynamics, particularly for Singapore, which has long been Indonesia’s main supplier of refined fuels. While Singapore’s refining capabilities remain strong, a significant drop in demand from its largest neighbor could prompt strategic adjustments in its export model. Meanwhile, US energy exporters stand to strengthen their presence in the fast-growing Southeast Asian market.

State energy company Pertamina has indicated it is prepared to implement the new import plan, and may expand its fuel storage capacity to accommodate increased volumes from the US.


Ad Banner
Advertisement by Open Privilege

Read More

Leadership Singapore
Image Credits: Unsplash
LeadershipMay 20, 2025 at 10:30:00 PM

How leaders can be resilient in uncharted waters

[WORLD] In a world increasingly defined by rapid change, economic disruption, and unforeseen challenges, the role of leadership has never been more critical....

Marketing Singapore
Image Credits: Unsplash
MarketingMay 20, 2025 at 10:30:00 PM

Quality redefines programmatic advertising

[WORLD] As digital advertising continues to evolve, programmatic advertising is undergoing a shift. Marketers are increasingly prioritizing quality over quantity, opting for more...

Leadership Singapore
Image Credits: Unsplash
LeadershipMay 20, 2025 at 9:30:00 PM

Building an owner’s mindset in your team

[WORLD] In the world of coaching, much of our attention is often devoted to boosting performance. We focus on cultivating a coaching culture...

Health & Wellness Singapore
Image Credits: Unsplash
Health & WellnessMay 20, 2025 at 8:30:00 PM

How combined factors raise breast cancer risk

[WORLD] A new study has revealed alarming findings about the compounded risk factors contributing to breast cancer in women. Researchers discovered that the...

Leadership Singapore
Image Credits: Unsplash
LeadershipMay 20, 2025 at 7:00:00 PM

The new era of financial leadership

[WORLD] The financial services industry is undergoing a massive transformation, driven by rapid technological advancements, evolving customer expectations, and heightened regulatory demands. As...

Relationships Singapore
Image Credits: Unsplash
RelationshipsMay 20, 2025 at 6:30:00 PM

Caring for ageing pets with dementia

[WORLD] As pets age, they may experience cognitive decline, similar to dementia in humans. This condition can lead to confusion, anxiety, and changes...

Economy Singapore
Image Credits: Unsplash
EconomyMay 20, 2025 at 5:30:00 PM

Morocco celebrates 60 years of Rose Festival

[WORLD] The 60th International Rose Festival in Kalaat M’Gouna, Morocco, has concluded, highlighting the region's rich heritage and the pivotal role of the...

Economy Singapore
Image Credits: Unsplash
EconomyMay 20, 2025 at 4:30:00 PM

Trump's tariffs hit musicians hard

[UNITED STATES] U.S. musicians are feeling the reverberations of President Donald Trump's sweeping tariffs, which have significantly increased the cost of musical instruments...

Leadership Singapore
Image Credits: Unsplash
LeadershipMay 20, 2025 at 3:00:00 PM

How women in leadership shape public perception

[WORLD] Women in leadership roles are redefining workplace dynamics, influencing not just business outcomes but also societal perceptions of gender equality and power....

Economy Singapore
Image Credits: Unsplash
EconomyMay 20, 2025 at 12:30:00 PM

Asia faces fuel price fury and political tensions

[ASIA] Asia is witnessing significant socio-political developments, ranging from public outcry over rising fuel prices to diplomatic tensions involving Malaysia and Russia. Here...

Politics Singapore
Image Credits: Unsplash
PoliticsMay 20, 2025 at 12:30:00 PM

Hong Kong leader defends national security legislation

[WORLD] Hong Kong’s Chief Executive John Lee Ka-chiu has defended the expedited implementation of subsidiary legislation tied to the city’s domestic national security...

Health & Wellness Singapore
Image Credits: Unsplash
Health & WellnessMay 20, 2025 at 11:30:00 AM

Emerging treatments for lupus

[WORLD] Lupus, a chronic autoimmune disease, has long posed challenges in treatment, often requiring lifelong medication to manage symptoms. However, recent advancements in...

Ad Banner
Advertisement by Open Privilege
Load More
Ad Banner
Advertisement by Open Privilege