Pertamina, the biggest Indonesian state-owned gasoline importer, has broadened the geographical origin for cargoes in its latest second-half 2025 term tenders, subject to a list of approved countries, while excluding its top supplier Singapore from two of the five tenders with a total implied volume of as much as 9 million-10 million barrels/month, according to market sources.

Indonesia has been aiming to reduce its reliance on oil product imports from Singapore, which currently supplies about 54%-59% of its fuel. The country intends to shift its sourcing to the US and the Middle East, with this transition expected to occur over the next six months.

The two tenders that exclude Singapore from the list of 50 approved origin countries are for up to 2.65 million barrels/month of 90 RON gasoline and up to 1.35 million barrels/month of 92 RON gasoline, respectively. These tenders are for loading between July and September or July and December, and both close on May 20, according to market sources.

While this move suggests that Indonesia is attempting to diversify its gasoline imports, market participants have expressed concerns about the potential increase in logistical costs associated with loading cargoes outside of traditional oil hubs such as Singapore and Malaysia.

“The Straits (of Malacca) is likely to remain the main gasoline supply source as it is one of the biggest blending hubs in Asia,” a Singapore-based trader said.

However, other market participants noted that supply zones in South Korea are capable of meeting Indonesia’s demand.

Traders said Pertamina, which imports the majority of gasoline into the country, averaging between 8 million and 11 million barrels each month, will ultimately make the final decision on the volume to be awarded.

Pertamina purchases the volumes through biannual term tenders, quarterly tenders and monthly spot cargoes. Total monthly imports consist of 70%-80% RON 90 gasoline, 20% RON 92 gasoline, and the remainder allocated for higher octane grades and gasoline blendstocks.

Given the scale of gasoline imports, supply tenders are awarded to a large number of suppliers, including oil majors, traders, state-owned oil companies and refiners.

“Pertamina is window shopping, while the (implied) volumes look large,” another Singapore-based trader said. “This does not mean they will award all of the volume tendered.”

Indonesia has a refining capacity of around 1.15 million b/d. However, its refineries are configured to maximize diesel production, according to industry sources.
Source: Platts