Indonesia’s national fuel supply remains robust and secure, even as the country approaches periods of heightened demand. This assurance comes directly from the Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia. Despite this positive outlook, the government recently navigated complex dynamics in procuring imported gasoline, including a peculiar incident where two cargos from Singapore were recalled by the seller.
Minister Bahlil confirmed that the government is meticulously monitoring national energy resilience, ensuring that reserves consistently exceed established minimum thresholds. Specifically, for the subsidized Pertalite gasoline (RON 90), national reserves currently stand at a comfortable 24.39 days.
“So, for Pertalite, this RON 90, which is subsidized gasoline, our reserves are at 24.39 days, well above the minimum limit planned for our nation,” Bahlil stated during a cabinet meeting on Friday, March 13.
Furthermore, stocks of Pertamax (RON 92), which is sold at market prices, have reached an impressive 28 days, significantly surpassing its minimum requirement of 11 days. Higher-octane gasoline like RON 98 also boasts a healthy reserve of approximately 31 days.
Beyond gasoline, the government has also affirmed the adequate status of other vital energy reserves. Subsidized diesel reserves are logged at 16.41 days, while other diesel types have a substantial 46-day supply. Aviation fuel (Avtur) reserves are stable at around 38 days, and kerosene supplies are equally ensured to be secure.
Bahlil emphasized that all these energy reserves are strategically prepared to meet the public’s needs, particularly during peak seasons. “God willing, fuel and LPG reserves for the upcoming holidays are secure,” he affirmed, providing reassurance to the populace.
Two Gasoline Cargos from Singapore Temporarily Recalled Amidst Global Demand Surge
Amidst the volatile global energy market dynamics, Bahlil revealed an unusual occurrence in recent imported gasoline transactions. The Indonesian government, through state-owned Pertamina, had already purchased gasoline from Singapore, and the transporting vessels had even entered Indonesian waters.
However, the seller subsequently requested the return of these two cargos, citing exceptionally high global demand for the commodity.
“Just a few days prior, we had purchased oil from Singapore; it had been tendered by Pertamina through a trader and had already departed, entering Indonesian waters. Then, two cargos were asked to return,” Bahlil recounted.
According to Bahlil, the current global oil market conditions no longer operate under entirely normal mechanisms due to severe supply constraints and an intense worldwide scramble for energy commodities.
In response, the government promptly coordinated with Pertamina to lodge a formal complaint with the seller. This swift action yielded a positive outcome, with the seller promising the return of both cargos.
“For those two vessels, we coordinated with Pertamina and lodged a complaint, and the two cargos are expected to be returned by the 18th. Otherwise, we would have sued,” Bahlil stated, underscoring the government’s firm stance.
Indonesia’s Continued Reliance on Gasoline Imports from Singapore and Malaysia
Bahlil further elaborated on Indonesia’s current energy import structure. For gasoline, Indonesia continues to depend on supplies from its neighboring countries.
“As for the gasoline we import, it’s primarily gasoline that we are importing. This gasoline comes partly from Malaysia and partly from Singapore,” the Minister of ESDM clarified.
Conversely, Indonesia’s crude oil imports originate from a more diverse range of nations, including Angola, Nigeria, Brazil, the United States, and Malaysia, with approximately 20 percent sourced from the Middle East.
Looking ahead, the government’s strategic target is to significantly reduce the import of refined fuel products by substantially increasing domestic refinery capacity. This transformative approach would enable Indonesia to primarily import crude oil, which would then be processed within the country.
“Indeed, going forward, there is no other option; we must develop our refineries to domestically produce all our needs,” he asserted, highlighting the critical importance of self-sufficiency.
He added that the expansion of domestic refineries is anticipated to ensure that Indonesia only needs to import crude oil to bridge the gap between national demand and local production, thus bolstering national energy independence.
Summary
Indonesia’s national fuel supply is robust and secure, with reserves comfortably exceeding minimum requirements, as affirmed by Minister Bahlil Lahadalia. Pertalite (RON 90) reserves stand at 24.39 days and Pertamax (RON 92) at 28 days, ensuring ample stock for public needs, including during peak seasons. Other vital energy reserves such as diesel, Avtur, and kerosene also maintain healthy levels, underscoring the nation’s energy resilience.
Despite strong reserves, Indonesia recently faced an incident where two purchased gasoline cargos from Singapore, already in Indonesian waters, were recalled by the seller due to high global demand. Following a complaint lodged by the government with Pertamina, the seller promised their return by the 18th. Indonesia currently imports gasoline mainly from Malaysia and Singapore, but the government’s long-term strategy focuses on increasing domestic refinery capacity to reduce refined fuel imports and achieve greater energy independence by processing crude oil locally.