Jakarta. State-owned energy company Pertamina confirmed on Sunday that it will follow the government’s directive to gradually reduce and eventually stop fuel imports from Singapore, shifting its supply sources to other countries.

Fadjar Djoko Santoso, Pertamina’s spokesman, said the company is still waiting for more detailed instructions from the government before implementing the policy.

“In principle, we are following the government’s directives,” Fadjar told Kompas. “While awaiting formal instructions, we will conduct a comprehensive assessment of the policy, including its logistical cost implications,” he added.

The move comes after Energy and Mineral Resources Minister Bahlil Lahadalia on Friday announced the plan to phase out fuel imports from Singapore, which currently accounts for around 60 percent of Indonesia’s total fuel imports.

Bahlil criticized Singapore’s pricing strategy, noting that the country sells fuel to Indonesia at prices similar to those from Middle Eastern suppliers, despite its geographic proximity.

“After reviewing it myself, I found the price to be the same as oil from the Middle East. That’s why we’re considering alternative suppliers,” Bahlil said, without providing further details.

Indonesia is also exploring new fuel import deals with the United States as part of a broader effort to ease trade tensions and tariff barriers left over from the Donald Trump administration. As part of that arrangement, Indonesia has agreed to purchase refined fuel, crude oil, and liquefied petroleum gas (LPG) from the US, Bahlil noted.

The shift away from Singapore is expected to begin in November, with imports from the city-state projected to be reduced by up to 60 percent.

To accommodate longer-distance imports, the government plans to establish a large oil terminal, which will help minimize logistical costs when sourcing fuel from farther suppliers.

Earlier this week, President Prabowo Subianto revealed that Indonesia currently spends nearly $40 billion annually on oil imports. He reiterated his administration’s goal to achieve energy independence in the coming years.

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