Indonesia to Pursue New Fuel Suppliers Beyond Singapore Under Revised Procurement Rules

Indonesia’s Minister of Energy and Mineral Resources Bahlil Lahadalia disclosed plans to expand the country’s fuel supply base beyond its traditional reliance on Singapore, naming China, India and other nations as prospective sellers of oil, crude and LPG. He outlined upcoming diplomatic trips to confirm these supplies. The shift follows Presidential Regulation No. 107 of 2026, which replaces Pertamina’s business-to-business tendering with a government-to-government or government-to-business arrangement, allowing the government to select suppliers directly.

Lahadalia argued that the old tender process was lengthy and could be bypassed by higher-priced offers from other bidders, sidelining Pertamina despite lower initial prices. The new approach will see a public service agency negotiate contracts and then coordinate with Pertamina for local distribution. Statistics Indonesia reported that fuel imports from Singapore reached US$8.48 billion between January and August 2026, with Malaysia at US$5.51 billion and the United States at US$2.74 billion.