Indonesia is set to propose an increase in energy imports from the US, with plans to purchase additional crude oil and liquefied petroleum gas (LPG) worth around $10bn (Rp168.4trn), reported Reuters.
This move is part of the country’s strategy to address its trade surplus with the US and avoid a 32% tariff on Indonesian exports.
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Indonesian Energy Minister Bahlil Lahadalia announced the initiative to local media, highlighting that Indonesian officials will soon head to Washington for tariff negotiations.
The overall goal is to acquire US goods valued at $18bn–19bn.
Bahlil suggested that to meet this target, Indonesia should raise the LPG import quota from the US and boost crude oil purchases.
To accommodate the increased imports from the US, Indonesia may need to reduce LPG imports from other sources.
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By GlobalDataEnergy Shift Institute managing director Putra Adhiguna mentioned that Indonesia could start by cutting 20–30% of its LPG imports from non-US suppliers, depending on the contracts.
Data from Kpler indicates that Indonesia imported approximately 306,000 barrels per day (bpd) of crude oil last year, primarily from Nigeria, Saudi Arabia and Angola, with around 13,000bpd sourced from the US.
In response to the proposed changes in LPG imports, a spokesperson from Pertamina, the nation’s leading LPG retailer, stated that the company is reviewing its import strategy and awaiting government directives.
Recently, Venezuela’s state oil company, PDVSA, withdrew several permissions it had granted to Chevron, a US-based company, for loading and exporting Venezuelan crude oil.
This decision follows the US tariffs imposed on Venezuela’s oil customers and comes after Washington revoked essential licences for several PDVSA partners, including Chevron, last month.
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