Indonesia seeks to enhance energy independence by constructing an oil storage facility near Singapore, aiming to reduce reliance on imports and strengthen its energy security.
Indonesia is planning to establish an oil storage facility on an island near Singapore to bolster its energy self-sufficiency goals, as outlined by President Prabowo Subianto. Energy and Mineral Resources Minister Bahlil Lahadalia revealed this intention on Wednesday.
The proposed storage facility is designed to accommodate various types of oil. The government’s decision is fueled by the concerning fact that Indonesia currently imports 60 percent of its fuel from Singapore, despite the latter lacking domestic oil production.
Minister Lahadalia expressed astonishment at this situation, stating, “Singapore doesn’t have oil, yet Indonesia imports 60 percent of its oil from them. It’s truly astonishing.”
He further highlighted the vulnerability of Indonesia’s oil reserves, noting that in a wartime scenario, the current capacity would only sustain the country for 21 days.
Previously, on October 14, 2024, Minister Lahadalia emphasized the government’s commitment to maximizing existing oil fields to curb crude oil imports, which amount to approximately Rp500 trillion (US$31.4 billion) annually.
To achieve this goal, the government will prioritize the reactivation of dormant oil fields. According to the Ministry of Energy and Mineral Resources, Indonesia possesses nearly 45,000 oil fields, of which 16,600 are currently inactive.
Among these idle fields, approximately 5,000 have the potential to be optimized to increase domestic oil production.
Source: ANTARA
