Minister Bahlil Lahadalia halts oil trade with Singapore, calling current strategy “embarrassing”
Indonesia will stop importing crude oil from Singapore for the next six months, redirecting its supply to Middle Eastern producers to strengthen energy sovereignty and eliminate reliance on non-oil-producing nations.
On May 8, 2025, Minister of Energy and Mineral Resources Bahlil Lahadalia announced that Indonesia would cease oil imports from Singapore for six months, citing national dignity and strategic energy concerns. The move was shared during a forum titled “Arah Kebijakan Geostrategi dan Geopolitik Indonesia” at Golkar Party headquarters in Jakarta.
“I’ve decided that for the next six months, we will no longer import oil from Singapore,” Bahlil declared, criticizing the longstanding dependency on a country that does not produce crude oil.
54% of Oil Imports Came from Singapore
Bahlil emphasized that 54% of Indonesia’s total oil imports have come from Singapore, a country known primarily for refining and trading—not producing—oil. He labeled the practice as “strategically embarrassing,” given that pricing from Singapore often mirrors that of direct Middle Eastern suppliers.
“Why are we importing from a country that doesn’t produce oil, when the price is the same as the Middle East?” he asked rhetorically. “It’s baffling.”
Middle East as Primary Alternative
The minister said Indonesia will instead source oil directly from Middle Eastern countries, calling the move “more dignified”. He stressed the importance of aligning import strategies with actual oil-producing nations to strengthen Indonesia’s geopolitical and economic positioning.
“Let’s import from the Middle East. They are real producers. This is how we restore our energy sovereignty,” Bahlil added, reinforcing his view that the switch is not just economical, but symbolic.
National Oil Demand Far Exceeds Domestic Supply
According to Deputy Minister Yuliot Tanjung, Indonesia consumed 518 million barrels of oil in 2023, while domestic production stood at only 221 million barrels. This left a deficit of 297 million barrels, more than half of which—about 160 million barrels—was supplied by Singapore.
The new directive aims to address this imbalance while also diversifying supply sources and building stronger bilateral ties with Middle Eastern oil producers.
Criticism of Past Energy Policy
Bahlil openly criticized past decisions for prioritizing convenience over strategy. “I don’t know if our brains weren’t working, or if we just didn’t finish school,” he joked, expressing disbelief that a resource-rich country like Indonesia had allowed itself to rely on a non-producing trade hub.
He positioned the new policy as a corrective measure to reverse years of ineffective planning in energy sourcing.
Indonesia’s decision to halt oil imports from Singapore marks a sharp pivot in energy strategy. With eyes set on Middle Eastern suppliers, the government hopes to strengthen national sovereignty, reduce dependency on intermediaries, and realign its import policies with long-term geopolitical goals. For regional observers, the shift signals Jakarta’s growing assertiveness in reshaping its energy future.
Sources: Batam News (2025), Oke Zone (2025)
Keywords: Indonesia Stops Oil Imports, Singapore Oil Trade Cut, Middle East Oil Supply, Bahlil Energy Policy, Geopolitical Oil Shift
