Jakarta is looking toward New Delhi’s refining muscle amid soaring fuel prices and a spat with Singapore
Indonesia is looking to secure gasoline supplies from India amid rising energy prices and friction with Singapore over toxic haze in the region from forest fires, according to reports.
Indonesian Energy Minister Bahlil Lahadalia is slated to visit India and China this week to secure more gasoline supplies, the Jakarta Globe reported. “I will travel to several countries, including India and China, to ensure supplies,” Lahadalia said in Jakarta.
Singapore, a major refining hub in the Southeast Asian region, accounted for half of Indonesia’s gasoline needs and supplied 28.36% of its oil and gas imports in the first half of 2026. However, Indonesia slashed its piped gas exports to the city state last week, days after Jakarta slammed neighboring countries that had complained about haze from intense forest fires on its territory.
The cuts have led to tensions between the two countries. Singapore depends on imported natural gas for about 95% of its electricity generation. The city state has not resorted to any retaliatory action, but its foreign minister is visiting Indonesia on Tuesday.
Jakarta is also facing severe fuel supply disruptions across its provinces, due to surging demand and distribution bottlenecks, apart from geopolitical uncertainties, Reuters reported.
Indonesia is not the first country to look toward India for its fuel needs amid the global oil crunch. Last week, US Secretary of State Marco Rubio termed India a “refining superpower” as Washington sought to tap New Delhi’s oil refining capabilities to cool global fuel prices.
Indian refineries, especially the Jamnagar refinery complex owned by billionaire Mukesh Ambani, are configured to process both Russian and Venezuelan heavy crude. The latter, especially, is considered key to lowering global fuel diesel prices, as it yields a higher volume of the fuel.
