Indonesia Shifts Fuel Imports, Eases US Trade Barriers

Indonesia plans to significantly reduce fuel imports from Singapore, redirecting up to 60% to suppliers in the US and Middle East as part of ongoing efforts to secure lower prices and address global geopolitical shifts. This move is closely tied to negotiations over a proposed 32% US tariff on Indonesian goods, with Indonesia offering to increase US energy imports by up to $10 billion, including wheat, soybeans, and petroleum products. As a related concession, Indonesia has lowered its local content requirement for government procurement from 40% to 25%, easing US concerns about trade barriers. The shift is expected to initially impact Singapore's oil refining sector and related industries, though experts believe markets will adapt over time. Indonesia is also establishing task forces to reform domestic policies and support these negotiation efforts. These steps aim to mitigate the economic impact of US tariffs, preserve Indonesia's trade surplus, and diversify trade relationships.