Jakarta. Indonesia plans to ramp up imports of US energy commodities, including crude oil, liquefied petroleum gas (LPG), and refined fuels, as part of efforts to ease trade tensions with Washington and address tariff pressures.

Energy and Mineral Resources Minister Bahlil Lahadalia said the move is part of ongoing negotiations aimed at resolving a 32 percent US import duty imposed on Indonesian goods. Indonesia posted a $14.5 billion trade surplus with the US in 2024, according to the Central Statistics Agency (BPS) data, but US data suggest a higher figure, prompting a push to rebalance trade flows.

“To address the discrepancy and support negotiations, we’re considering increasing our energy imports from the US,” Bahlil said after a cabinet meeting at the Presidential Palace in Jakarta on Thursday.

Bahlil said the plan will not burden the state budget. “We’re not adding new import quotas. We’re just switching some of our existing supply sources, from the Middle East, Africa, and Southeast Asia, to the US,” he said. “This won’t affect the state budget and won't increase our import volumes.”

Currently, around 54 percent of Indonesia’s LPG imports come from the US, a share that could rise to as much as 85 percent. Crude oil imports from the US, now accounting for less than 4 percent of Indonesia’s total, are expected to exceed 40 percent under the proposed plan. Refined fuel imports will also be expanded, though targets are still being finalized.

Indonesia imported $36.28 billion worth of oil and gas in 2024, a 2 percent decline from the previous year. Oil and gas accounted for 15.5 percent of the country’s total imports.

“These adjustments are part of our strategy to support trade normalization,” Bahlil said, adding that technical talks with state-owned energy company Pertamina are underway.

The planned import increase is one of several initiatives under discussion by a high-level Indonesian delegation visiting Washington, led by Chief Economic Affairs MinisterAirlangga Hartarto. The delegation is seeking to reduce trade friction and unlock broader economic cooperation.

Running through April 23, the lobbying mission also includes talks on a potential limited free trade agreement, promotion of Indonesian investment in the US, and reforms to domestic regulations, such as easing local content requirements for the telecommunications and technology sectors.

Indonesia is also considering targeted tax reforms, including a potential reduction in value-added tax (VAT) for selected US products, to further boost trade.

“We’re revitalizing our bilateral economic ties,” Airlangga said in a statement, stressing the need to rebalance trade while ensuring access to critical imports.

Beyond energy, Indonesia is also looking to step up purchases of US agricultural goods such as soybeans and cotton.