Oil Imports From Singapore, Malaysia Push Indonesia Into Trade Deficit

Massive energy imports from neighboring ASEAN countries, particularly Singapore and Malaysia, pushed Indonesia into a trade deficit for the first time in six years.

In May 2026, Indonesia ended its 72-month streak of consecutive trade surpluses, posting a trade deficit of US$1.61 billion. Statistics Indonesia (BPS) attributed the downturn to the country’s oil and gas trade deficit, which reached US$3.76 billion during the month. Higher imports of crude oil and refined petroleum products were the main contributors to the shortfall.

BPS Deputy Ateng Hartono told reporters on Wednesday that Indonesia imported US$5.1 billion worth of oil and gas from Singapore during the first five months of 2026.

“This accounts for approximately 29.38% of our total oil and gas imports. Malaysia followed with US$3.6 billion, representing 20.54%,” Ateng said in Jakarta.

The United States ranked third, supplying US$1.4 billion worth of oil and gas, equivalent to 8.28% of Indonesia’s total imports in the sector.

“There has been no change in the main countries supplying our oil and gas compared with last year. However, Brazil has emerged as our fourth-largest supplier of crude oil,” Ateng said.

He did not disclose the volume of Brazilian crude imported during the January–May period.

Indonesia’s total oil and gas imports reached US$17 billion between January and May, including US$4.51 billion in May alone.

Indonesia continues to rely heavily on imported refined fuels because its domestic refining capacity is insufficient to meet demand.

President Prabowo Subianto is seeking to reduce fuel imports by increasing the mandatory palm oil content in diesel fuel through the B50 biodiesel program. The policy raises the biodiesel blend to 50%, up from the previous 40% requirement under the B40 mandate.

On the same day, Energy Ministry spokesperson Dwi Anggia told state news agency Antara that the government plans to officially launch the B50 mandate later this month.

“All sectors are ready to implement B50,” Dwi said, adding that trials involving various types of vehicles had produced encouraging results.

The government estimates that implementing B50 could save up to Rp157.28 trillion (US$8.7 billion) in foreign exchange this year by reducing fuel imports.

Source : https://jakartaglobe.id/business/singapore-malaysia-oil-imports-drive-indonesias-deficit