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 minimum octane rating of 90 and is marketed domestically as Pertalite. Singapore’s geographic proximity, advanced blending facilities and extensive storage capacity have made it a key supplier to Indonesia.

Jakarta is now trying to diversify away from Singapore and is looking for alternative suppliers such as China and India, according to Minister of Energy and Mineral Resources Bahlil Lahadalia.