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Indonesia's plan to import more fuel from the US, and sidelining Singapore, raises questions over costs.
Indonesia's plan to import more fuel from the US, and sidelining Singapore, raises questions over costs.

Straits Times

time16-05-2025

  • Business
  • Straits Times

Indonesia's plan to import more fuel from the US, and sidelining Singapore, raises questions over costs.

More than half of Indonesian fuel imports are currently from its neighbour Singapore. PHOTO: AFP Indonesia's plan to shift fuel imports from US instead of Singapore, raises questions over costs JAKARTA - A plan by the Indonesian government to import significantly more fuel from the United States, while reducing purchases from Singapore, has raised concerns over the higher transport and insurance costs that would be incurred due to the longer sailing time and through possibly treacherous waters. The move is driven by ongoing negotiations with the US over the 32 per cent tariff the Trump administration has imposed on Indonesian goods, in response to Indonesia's trade surplus with the US. More than half of Indonesian fuel imports are currently from its neighbour Singapore, which refines crude oil from the Middle East, Australia and Malaysia . The US, on the other hand, accounts for less than 0.1 per cent of Indonesia's fuel imports in 2024. Energy and Mineral Resources Minister Bahlil Lahadalia said on May 9 that the shift away from Singapore for some fuel imports would happen gradually. Professor Iwa Garniwa, an energy analyst at the University of Indonesia, told The Straits Times: 'The government must study such a plan carefully, taking into account the logistics factor.' Importing fuel from the US would require some of the cargo to transit through the Suez Canal, said Professor Marsuki of the Hasanuddin University in South Sulawesi. The area has only recently recovered from security incidents such as missile attacks in the Red Sea and southern Yemen by Yemen's Houthi rebels. 'The risk arises from logistics costs due to the longer journeys and factors caused by the global geopolitics recently being less conducive to stable security. This gives a prospect of uncertainty going forward,' Prof Marsuki, who goes by one name , told ST. Ships plying the Red Sea route faced a doubling of their marine insurance premiums due to the rising level of insecurity off the coast of Yemen. War risk premiums rose to 0.7 per cent of the value of a ship in February for some voyage rates, from 0.5 per cent in January, Reuters reported in March. The premium eased in January compared with December 2024, as the Iran-aligned Houthis said they would halt attacks on US- and UK-linked shipping, in tandem with a ceasefire between Israel and Palestinian militant group Hamas. Reuters also cited industry sources saying that for some US- and UK-linked ships, voyage rates were quoted up to 2 per cent higher in recent weeks for those still willing to sail through the waterway. Among the companies tasked to import fuel for Indonesia are state-owned energy firm Pertamina Patra Niaga, which has said that it will follow the government's directive to shift its supply sources from Singapore, towards other countries. Pertamina's corporate secretary, Ms Heppy Wulansari, told ST that it is awaiting further clarity from Mr Bahlil's ministry before implementing the policy. Indonesia consumes 1.6 million barrels of oil per day, while only producing between 500,000 and 600,000 barrels per day, making it a net oil importing country, said Mr Komaidi Notonegoro, executive director of energy research group ReforMiner Institute. Most of the imported fuel is used to supply to the pump stations that then sell to land-based vehicle customers; to industries for production activities; and for generating electricity in power plants. In 2024, Indonesia imported petroleum worth US$11.4 billion, or 53 per cent of its total petroleum imports, from Singapore, while only US$19 million worth of the commodity came from the US, or less than 0.1 per cent of the total petroleum imports, according to government data. Most of the remaining 47 per cent of fuel imports in 2024 were from Malaysia (valued at US$4.5 billion), China (US$1 billion) and Saudi Arabia (US$825 million). The Indonesian government has said it plans to raise energy imports from the US by about $10 billion, including products like refined fuel and liquefied natural gas. Indonesia in 2024 ran a US$18 billion (S$23.3 billion) trade surplus with the US. The US has imposed a 32 per cent tariff on Indonesian goods, but its implementation has been paused until July to make room for negotiations. Indonesia, South-east Asia's largest economy, has committed to a series of strategic measures to balance trade with Washington, that includes removing non-tariff barriers such as a requirement to have locally made parts in foreign products, such as Apple's iPhones. Referring to additional costs of shipping fuel from the US, a former Pertamina senior officer told ST that some of the petroleum would likely be transported using very large crude carriers (VLCCs) that would not be able to use the shorter Suez Canal route. The VLCCs must instead use a much longer route by sailing around South Africa. But the officer, who declined to be identified, also noted that Singapore is a regional oil refining and trading hub that takes crude oil from various parties before turning it into fuel and shipping it to buyers. 'You can shift to buying from traders from any country, but the fuel would likely get shipped from Singapore because the refinery facilities are in Singapore,' the officer added, by way of explaining there is a possibility that US fuel could come via Singapore. Apart from costs, there is also bilateral ties to look at, said Mr Komaidi . He noted that 70 per cent of Indonesia's total fuel imports are from Singapore and Malaysia, a reflection of Indonesia's good relations with these neighbours. 'The relations built with Singapore and Malaysia, and other countries in the Asean region have been around since a very long time ago. We also must take this into consideration,' said Mr Komaidi. He added that the move to source more energy imports from the US should only be done if it will not affect Indonesia's neighbourly relations . On the other hand, there could be upsides to buying US natural gas , said Mr Komaidi. The economies of scale and mature infrastructure of the US energy market allows gas prices to be very competitive, at only between US$3 to US$4 per MMBTU (million British thermal unit). The price in Indonesia is at between US$7 to US$9 per MMBTU, he said. 'Add that with transport and insurance costs, the gas from the US would be around the same price when it arrives here,' Mr Komaidi said. Prices could possibly be lower, he noted, but not by much. Wahyudi Soeriaatmadja has been Indonesia correspondent at The Straits Times since 2008, and is based in Jakarta. Join ST's WhatsApp Channel and get the latest news and must-reads.

Starmer ‘deeply saddened' by death of UK-linked hostage after body returned
Starmer ‘deeply saddened' by death of UK-linked hostage after body returned

Yahoo

time20-02-2025

  • Politics
  • Yahoo

Starmer ‘deeply saddened' by death of UK-linked hostage after body returned

The Prime Minister has said he is 'deeply saddened' by the death of UK-linked Hamas hostage Oded Lifshitz. The body of Mr Lifshitz, 84, was confirmed as one of four returned to Israel by Hamas on Thursday, as part of an ongoing prisoner exchange under the current ceasefire agreement. Mr Lifshitz's family, including his British-based daughter, Dr Sharone Lifschitz, had received no information on his whereabouts since the Hamas attack on October 7 2023, when he was taken from Kibbutz Nir Oz. Sir Keir Starmer said on Thursday: 'I was deeply saddened to hear of the death of Oded Lifshitz after he was taken hostage by terrorists in Gaza, and I extend my heartfelt condolences to his daughter Sharone and his wife Yocheved. 'When I met Sharone in Downing Street, she showed remarkable strength in the face of the most difficult circumstances. 'The news of her father's death is a tragedy. It is my hope that the peace he worked to see in the region through his charity work and activism will be achieved. 'My thoughts are also with the Bibas family, who have faced immense pain as they awaited news of Shiri and her sons Kfir and Ariel. 'We must see all remaining hostages released, and the ceasefire upheld. My government remains committed to working with our international partners to bring an end to this suffering and secure a long-term peace in the Middle East.' Earlier on Thursday, a statement from Mr Lifshitz's family, released by the Hostages and Missing Families Forum Headquarters, said: 'We received with deep sorrow the official and bitter news confirming the identification of our beloved Oded's body. STATEMENT FOR IMMEDIATE RELEASE BY LAWYERS FOR THE BRITISH HOSTAGE FAMILIES 20 February 2025 Today, 20 February 2025, is one of immense sadness, and of appears that 503 days after they were taken from their homes by Hamas terrorists, the bodies of four people have… — Adam Wagner (@AdamWagner1) February 20, 2025 'Five hundred and three agonising days of uncertainty have come to an end. We had hoped and prayed so much for a different outcome. 'Now we can mourn the husband, father, grandfather, and great-grandfather who has been missing from us since October 7. 'Our family's healing process will begin now and will not end until the last hostage is returned.' Mr Lifshitz was a retired Israeli journalist, a great-grandfather and a grandfather of 11. His wife, Yocheved, 86, was also taken hostage but was released two weeks later. Adam Wagner, the lawyer for Dr Lifschitz, 53, of Walthamstow, east London, and other British hostage families, said: 'Today, 20 February 2025, is one of immense sadness, and of failure. 'It appears that 503 days after they were taken from their homes by Hamas terrorists, the bodies of four people have been returned to Israel. 'It is understood that three of those bodies are of Shiri Bibas, and her two little children, Ariel and her baby, Kfir. We are horrified at their deaths. 'The fourth body is believed to be that of Oded Lifshitz, aged 84, whose daughter, our client Dr Sharone Lifschitz, is British, and whose wife, Yocheved… was freed in October 2023, also after being taken hostage.' Stella Creasy, the MP for Walthamstow, said that she was 'heartbroken'. In a post on Bluesky on Thursday she described the news as a 'devastating blow'. 'We had hoped for a miracle – to be able to welcome Oded Lifshitz back to his family and to join them in Walthamstow,' she said. 'A man who dedicated his life to fighting for peace between Israel and Palestine, driving ambulances across the border to help.' She added: 'The news today and pictures (are) a devastating blow. We stand with our neighbour, Sharone Lifschitz, in her grief and in sharing the stories of his work.' The statement from Mr Wagner described him as someone whose 'life has always been dedicated to peace'. Fellow British-linked hostage Eli Sharabi was among those freed earlier this month, but his relieved family said he looked 'incredibly frail' and 'the spark was gone from his eyes'.

Starmer ‘deeply saddened' by death of UK-linked hostage after body returned
Starmer ‘deeply saddened' by death of UK-linked hostage after body returned

The Independent

time20-02-2025

  • Politics
  • The Independent

Starmer ‘deeply saddened' by death of UK-linked hostage after body returned

The Prime Minister has said he is 'deeply saddened' by the death of UK-linked Hamas hostage Oded Lifshitz. The body of Mr Lifshitz, 84, was confirmed as one of four returned to Israel by Hamas on Thursday, as part of an ongoing prisoner exchange under the current ceasefire agreement. Mr Lifshitz's family, including his British-based daughter, Dr Sharone Lifschitz, had received no information on his whereabouts since the Hamas attack on October 7 2023, when he was taken from Kibbutz Nir Oz. Sir Keir Starmer said on Thursday: 'I was deeply saddened to hear of the death of Oded Lifshitz after he was taken hostage by terrorists in Gaza, and I extend my heartfelt condolences to his daughter Sharone and his wife Yocheved. 'When I met Sharone in Downing Street, she showed remarkable strength in the face of the most difficult circumstances. 'The news of her father's death is a tragedy. It is my hope that the peace he worked to see in the region through his charity work and activism will be achieved. 'My thoughts are also with the Bibas family, who have faced immense pain as they awaited news of Shiri and her sons Kfir and Ariel. 'We must see all remaining hostages released, and the ceasefire upheld. My government remains committed to working with our international partners to bring an end to this suffering and secure a long-term peace in the Middle East.' Earlier on Thursday, a statement from Mr Lifshitz's family, released by the Hostages and Missing Families Forum Headquarters, said: 'We received with deep sorrow the official and bitter news confirming the identification of our beloved Oded's body. 'Five hundred and three agonising days of uncertainty have come to an end. We had hoped and prayed so much for a different outcome. 'Now we can mourn the husband, father, grandfather, and great-grandfather who has been missing from us since October 7. 'Our family's healing process will begin now and will not end until the last hostage is returned.' Mr Lifshitz was a retired Israeli journalist, a great-grandfather and a grandfather of 11. His wife, Yocheved, 86, was also taken hostage but was released two weeks later. Adam Wagner, the lawyer for Dr Lifschitz, 53, of Walthamstow, east London, and other British hostage families, said: 'Today, 20 February 2025, is one of immense sadness, and of failure. 'It appears that 503 days after they were taken from their homes by Hamas terrorists, the bodies of four people have been returned to Israel. 'It is understood that three of those bodies are of Shiri Bibas, and her two little children, Ariel and her baby, Kfir. We are horrified at their deaths. 'The fourth body is believed to be that of Oded Lifshitz, aged 84, whose daughter, our client Dr Sharone Lifschitz, is British, and whose wife, Yocheved… was freed in October 2023, also after being taken hostage.' Stella Creasy, the MP for Walthamstow, said that she was 'heartbroken'. In a post on Bluesky on Thursday she described the news as a 'devastating blow'. 'We had hoped for a miracle – to be able to welcome Oded Lifshitz back to his family and to join them in Walthamstow,' she said. 'A man who dedicated his life to fighting for peace between Israel and Palestine, driving ambulances across the border to help.' She added: 'The news today and pictures (are) a devastating blow. We stand with our neighbour, Sharone Lifschitz, in her grief and in sharing the stories of his work.' The statement from Mr Wagner described him as someone whose 'life has always been dedicated to peace'. Fellow British-linked hostage Eli Sharabi was among those freed earlier this month, but his relieved family said he looked 'incredibly frail' and 'the spark was gone from his eyes'.

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