INDONESIA DATA: Light distillate imports rise 19% MOM in December

Indonesia's imports of light distillates, including gasoline, naphtha and LPG, rose 18.74% month over month and 2.75% year over year to 2.544 million mt in December, Statistics Indonesia data showed Feb. 12, amid higher inflows of gasoline and naphtha.

The country imported 1.735 million mt of 90 RON to 97 RON gasoline in December, up 33.77% month over month and 1.82% year over year, amid the year-end festivities and potential consumer spending boosts from a government stimulus package, sources said.

The government announced a stimulus package worth $27.35 billion on Dec. 16, local media reported.

Demand was expected to remain steady into the new year, supported by the previously mentioned stimulus package.

Higher naphtha imports

Indonesia's naphtha imports rebounded 64.15% month over month and 153.14% year over year to 321,360 mt in December, the data showed. For the full year in 2024, total naphtha imports fell 5.36% year over year to 1,940,170 mt.

In Indonesia, naphtha is primarily used as a feedstock for petrochemical production or as a gasoline blendstock to produce lower-octane gasoline grades.

There were no naphtha exports from Indonesia in December, compared with 35,660 mt in December 2023. Over January-December, the country exported 157,110 mt of naphtha, up 72.77% year over year.

In the latest spot news, state-owned refiner Pertamina issued a tender seeking at least 22,000 mt of naphtha for delivery over March 13-15 to TPPI Tuban. The tender closed Jan. 15 and was valid until Jan. 20; however, the award details could not be confirmed.

Lower LPG inflows

Indonesia's propane imports dropped 23.59% month over month and 23.84% year over year to 246,340 mt in December, the data showed, while butane inflows fell 26.25% month over month and 24.91% year over year to 241,770 mt.

According to S&P Global Commodities at Sea data, 75,665 mt of propane and 78,007 mt of butane were discharged in December, compared with 170,248 mt of propane and 152,739 mt of butane in November.

Most of the LPG cargoes, totaling 122,036 mt, were domestic transfers, primarily from the Merak port and Kalbut Situbondo terminal to Tanjung Priok and Tanjung Perak. Australia was Indonesia's main LPG supplier in December with 20,762 mt, followed by South Korea at 4,044 mt and Malaysia at 2,123 mt.

Platts, part of S&P Global Commodity Insights, assessed propane CFR North Asia at an average of $604.69/mt in December, down from an average of $625.69/mt in November, while butane CFR North Asia was assessed at an average of $600.12/mt in December, down from an average of $618.93/mt in November.

Middle distillate imports rise

Indonesia's imports of middle distillates, which include gasoil and jet fuel, edged 0.61% higher month over month to 706,670 mt in December, the data showed.

The country's inflows of co-distillate gasoil fell 1.14% month over month but rose 18.17% year over year to 585,500 mt in December.

Over January-December, total gasoil imports jumped 39.74% year over year to 7.079 million mt.

Indonesia's gasoil imports are expected to decline in 2025, as the country has announced plans to reduce imports due to the mandatory use of a higher biodiesel blend.

In early February, Indonesia's Energy and Mineral Resources Minister Bahlil Lahadalia said the country is expected to cut gasoil imports by 41.7% year over year to 4.6 million kiloliters in 2025.

However, gasoil imports may not see a decline yet in January or February, as Pertamina's 348,000-b/d Cilacap refinery has been undergoing a month-long planned maintenance at its 230,000-b/d No. 2 crude distillation unit since mid-January.

For February, Indonesia sought 500,000 barrels of gasoil with a maximum of 2,500 parts per million sulfur content via a spot tender, a sharp drop from January's spot tender purchase of up to 1.2 million barrels, according to tenders tracked by Commodity Insights. Market participants said the decline in spot demand from the country had weighed on the high sulfur diesel segment.

Indonesia also imported 121,170 mt, or 957,243 barrels, of jet fuel in December, up 10.04% month over month and 130.57% year over year, ahead of the turnaround at the Cilacap refinery. Total jet fuel imports in 2024 reached 1,422,710 mt, surging 543.31% year over year.

In the near term, jet fuel imports are expected to remain elevated. Pertamina Patra Niaga bought 200,000 barrels of jet A-1 fuel for delivery over Feb. 17-19 to STS Kalbut from a European trading house and another 200,000 barrels for delivery over Feb. 25-27 to Jakarta (SKH) from a Middle Eastern trading house, at premiums of around $1.30-$1.50/b to the lower balance-February average of either Mean of Platts Singapore jet fuel/kerosene assessments or Argus Singapore kerosene assessments, FOB Straits.

The company previously bought three cargoes totaling 500,000 barrels of jet A-1 fuel for delivery over Jan. 17-19, Jan. 20-22 and Jan. 29-31; however, the award details could not be confirmed.