Key facts
- Indonesia is seeking to diversify gasoline imports beyond Singapore, with plans to visit China and India.
- Analysts believe diversifying suppliers is insufficient without refinery modernization and alternative fuel investment.
- Higher demand for subsidized gasoline is expected to add approximately $1.8 billion to the state budget over one year.
- The estimated shortfall per liter of Pertalite is Rp 9,100, with a subsidized price of Rp 10,000.
- Fuel disruptions and vehicle queues have been reported in several Indonesian provinces.
Indonesia is seeking to secure additional gasoline supplies from China and India as it aims to reduce its reliance on Singapore and mitigate the impact of Middle East tensions. Energy Minister Bahlil Lahadalia is scheduled to visit these countries to arrange fuel imports. However, analysts suggest that simply diversifying import sources will not solve the nation's fuel production shortfall without significant investment in refinery modernization and alternative energy sources. The country has experienced fuel disruptions and long vehicle queues in several provinces.