Indonesia to Begin Crude Oil Imports from the US in December
Jakarta. Indonesia will begin importing crude oil from the United States starting in December as part of a bilateral trade arrangement linked to tariff reductions agreed under the Donald Trump administration, Energy Minister Bahlil Lahadalia said on Tuesday.
Indonesia has long diversified its oil imports from suppliers in the Middle East and Africa, but the US is becoming an additional source following Washington’s decision to reduce reciprocal tariffs from 32 percent to 19 percent.
“Most likely, imports from the US can start this December,” Bahlil told reporters at the Presidential Palace in Jakarta. In addition to crude oil, Indonesia also imports liquefied petroleum gas (LPG) from the US.
“Imports of LPG from America have already been ongoing,” he added, without specifying volumes.
Under the bilateral trade agreement, Indonesia has agreed to import up to $15 billion worth of US energy products, while agricultural imports from the US are targeted at $4.5 billion.
Earlier this week, Coordinating Minister for Economic Affairs Airlangga Hartarto said that Indonesia will purchase 15 million barrels of oil equivalent (BOE) from the United States without a tender, through a direct assignment to state-owned oil and gas company Pertamina.
The government has not yet disclosed shipment schedules, pricing terms, or refinery allocation plans for the incoming US crude supply.
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