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.


Read More

Mortgages United States
Image Credits: Unsplash
MortgagesJuly 7, 2025 at 2:30:00 AM

Why a bank mortgage may serve you better over time

For many Singaporeans, buying a home begins not with browsing property listings, but with an entirely different kind of decision: choosing the loan...

Loans United States
Image Credits: Unsplash
LoansJuly 7, 2025 at 2:00:00 AM

When should you use a personal loan in Singapore?

Singaporeans are, by most global comparisons, financially prudent. The national savings rate remains high, household debt levels are generally stable, and mandatory CPF...

Home Living United States
Image Credits: Unsplash
Home LivingJuly 7, 2025 at 2:00:00 AM

Why your nonstick pan suddenly isn’t working like it used to

When I got married three years ago, I didn’t want a mountain of kitchen gadgets cluttering our tiny flat. Instead of a traditional...

Leadership United States
Image Credits: Unsplash
LeadershipJuly 7, 2025 at 2:00:00 AM

What happens when leaders rely on business storytelling

Startup lore has turned storytelling into a superpower. “Great founders are great storytellers,” they say. VCs nod. Accelerators drill it. Decks lead with...

Health & Wellness United States
Image Credits: Unsplash
Health & WellnessJuly 7, 2025 at 2:00:00 AM

Why blood sugar spikes at night—and how to prevent it

You’re not eating terribly. You’re not completely sedentary. Maybe you’re even tracking your macros and pushing through daily workouts. But something still feels...

Economy United States
Image Credits: Unsplash
EconomyJuly 6, 2025 at 7:30:00 PM

Trump economic volatility is breaking the global trust flywheel

Six months into Donald Trump’s second term, the US economic engine isn’t just misfiring—it’s rattling the frame of global market trust. The data...

Relationships United States
Image Credits: Unsplash
RelationshipsJuly 6, 2025 at 7:30:00 PM

Come back before the door closes for good

Not long ago, I wrote about what a “good death” looks like: affairs settled, loved ones nearby, no harsh words left unsaid. But...

Economy United States
Image Credits: Unsplash
EconomyJuly 6, 2025 at 7:00:00 PM

Lady Gaga’s concert gave Singapore’s economy a boost

In the cool hum of a Singapore evening, the National Stadium came alive—not just with sound, but with sequins, silver boots, and face...

Mortgages United States
Image Credits: Unsplash
MortgagesJuly 6, 2025 at 7:00:00 PM

Why mortgage structure matters for economic resilience

Mortgage structure isn’t just a personal finance decision—it’s a systemwide signal. When housing credit is tightly regulated, households remain resilient, banks stay solvent,...

Loans United States
Image Credits: Unsplash
LoansJuly 6, 2025 at 6:30:00 PM

New student loan repayment plan 2025

If you’ve been using an income-driven plan to manage your student debt, you may want to sit down. The new student loan repayment...

Relationships United States
Image Credits: Unsplash
RelationshipsJuly 6, 2025 at 6:30:00 PM

Helping toddlers sleep through the night

The hallway is quiet—until it’s not. You hear the rustle of sheets, the soft click of a door, then the unmistakable pat-pat of...

In Trend United States
Image Credits: Unsplash
In TrendJuly 6, 2025 at 1:30:00 PM

What a yellow cap on Coca-Cola really means

There are two types of Coke drinkers. The kind who grab a bottle, twist off the cap, and never think twice about it....

Load More