Indonesia Seeks New Fuel Suppliers, but Challenges Remain

Jakarta is diversifying Pertalite imports while preparing new procurement rules. Contracts, delivery and domestic distribution remain the practical tests.

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Pertamina fuel station at Hilir Raya, Palembang, April 20, 2023.

Pertamina station in Palembang, April 20, 2023. File photo, not November supplies. Cropped for display under the same licence. Firzafp / Wikimedia Commons / CC BY-SA 4.0.

By Evan Liu

Indonesia is seeking additional supplies of Pertalite gasoline from China and India as it diversifies a network that has relied on suppliers such as Singapore. The energy ministry’s oil and gas director general, Laode Sulaeman, described the initiative on November 2. Talks and implementing rules are still being developed; the announcement does not provide confirmed volumes, prices or delivery schedules.

Pertalite is the subsidized RON 90 gasoline widely used in Indonesia. RON measures a fuel’s resistance to premature ignition inside an engine; it is not an indication of how much fuel is available. State company Pertamina Patra Niaga would handle the additional supplies.

Existing imports will continue while the new arrangements are prepared. Diversification therefore means widening the choice of suppliers, not an announced termination of imports from Singapore.

A new procurement system still needs implementation

The energy ministry announced Presidential Regulation 107/2026 on October 26. It changes arrangements for importing crude oil, refined fuels and LPG, providing for government-to-government and government-to-business channels.

The policy seeks more dependable supply arrangements. But the framework and an actual cargo are separate steps. Implementing rules must establish how purchases are organized, who is responsible, and how offers and deliveries are evaluated.

Longer-term cooperation could give Indonesia more options when an established supplier cannot meet its requirements. It will still need agreed product specifications, suitable delivery dates, transport and storage. An agreement that cannot deliver the required fuel on time will do little to improve availability at filling stations.

More suppliers do not remove shared risks

Singapore is an important regional trading and refining hub. Buying from additional countries can reduce dependence on any single supply channel, but all those sellers operate in interconnected energy markets. A global price increase or a disruption affecting several routes can reach multiple suppliers at once.

Distance also matters. A different source may require longer voyages, additional freight expenditure or changes in terminal scheduling. The relevant comparison is the reliability and total delivered cost of usable fuel, not just the number of countries on a supplier list.

Indonesia’s own oil production does not settle this problem. Crude oil must be processed into the fuels consumers use, and domestic production and refining do not necessarily match demand for every product. Importing more crude instead of gasoline changes the tasks performed domestically; it does not automatically eliminate external dependence.

Delivery within Indonesia is another test

After fuel arrives, it must move through storage, ports and distribution networks across an archipelago. More international supply cannot by itself solve a bottleneck in those systems. Adequate stocks in one location also do not guarantee timely supply elsewhere.

Subsidized prices add a budget question. If import costs rise while the retail price is held down, consumers may be protected from the immediate increase, but the cost has to be absorbed elsewhere. Changes in demand between subsidized and unsubsidized fuel grades can also alter procurement needs without representing an equivalent rise in total gasoline use.

For now, the policy’s value will be clearer when the ministry completes its rules and publishes concrete procurement arrangements. Delivery records, stock availability and distribution performance will show whether additional sources improve reliability. New supplier relationships can help, but their contribution must be measured alongside refining, logistics and the cost of maintaining affordable fuel.

Sources and editorial note

Edited bilingual edition of Evan Liu’s contribution to the Asia Horizon Review publication. Repetition has been condensed, source notes added and planned outcomes distinguished from completed actions. The author’s central analysis is retained.

Evan Liu — Medium original / 刊物原稿

Energy ministry official’s November 2 remarks, ANTARA

Indonesia Ministry of Energy: Regulation 107/2026, October 26

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