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Indonesia to Cut ASEAN Import to Make Room for $15 Billion US Energy

Jayanty Nada Shofa
February 20, 2026 | 10:48 pm
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US President Donald Trump poses for a family photo with, from left, Singapore Prime Minister Lawrence Wong, East Timor's Prime Minister Kay Rala Xanana Gusmao, Vietnam's Prime Minister Pham Minh Chinh, Cambodian Prime Minister Hun Manet, Malaysian Prime Minister Anwar Ibrahim, Philippine President Ferdinand Marcos Jr., the Sultan of Brunei Hassanal Bolkiah, Indonesian President Prabowo Subianto and Laos' Prime Minister Sonexay Siphandone at the ASEAN Summit in Kuala Lumpur, Malaysia, Sunday, Oct. 26, 2025. (AP Photo/Mark Schiefelbein)
US President Donald Trump poses for a family photo with, from left, Singapore Prime Minister Lawrence Wong, East Timor's Prime Minister Kay Rala Xanana Gusmao, Vietnam's Prime Minister Pham Minh Chinh, Cambodian Prime Minister Hun Manet, Malaysian Prime Minister Anwar Ibrahim, Philippine President Ferdinand Marcos Jr., the Sultan of Brunei Hassanal Bolkiah, Indonesian President Prabowo Subianto and Laos' Prime Minister Sonexay Siphandone at the ASEAN Summit in Kuala Lumpur, Malaysia, Sunday, Oct. 26, 2025. (AP Photo/Mark Schiefelbein)

Jakarta. A minister said Friday that Indonesia’s pledge to buy $15 billion worth of US energy won’t take a toll on the national energy trade balance, citing that it would only import less from its ASEAN neighbors, among others, to make room for American shipments.

Indonesia has just sealed a tariff deal with the US government — a major outcome from President Prabowo Subianto’s days-long visit to Washington. The reciprocal trade agreement also binds Indonesia to facilitate the imports of American energy. The purchase commitments are as follows: $3.5 billion of liquefied petroleum gas (LPG), $4.5 billion of crude oil, and $7 billion of refined gasoline. The government later clarified that the upcoming shopping spree will not translate into ballooning energy imports. To keep the overall import volume unchanged, Indonesia will count on reallocation. That is by buying less from its traditional partners.

“We will just shift a portion of what we usually purchase from other countries [to the US]. [So reallocating them] from Southeast Asia, the Middle East, and Africa. ... Perhaps, the Southeast Asian imports will face the biggest cut,” Energy Minister Bahlil Lahadalia told a virtual press conference.

He said the government would make sure that these energy purchases would apply "win-win economic mechanisms".

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"Our overall energy trade balance stays the same. ... We have already bought US energy in the past, so this is just about increasing the volume [of shipments from Washington].”

State oil firm Pertamina’s boss Simon Aloysius Mantiri went on to say that the imports of US energy would follow a transparent tender.

“There is no direct appointment [of our partners]. … We need to diversify our sources so we can get the most competitive price. … With this deal, US imports will make up 70% of our LPG supplies, up from the current 57%,” Simon said.

Pertamina chose to wait for the trade deal to enter into force as the company would continue to abide by existing regulations in the meantime.

By “facilitating” the energy imports, the US wants Indonesia to grant all necessary approvals, decrees, and authorizations to state-owned entities and the private sector. Washington urged Indonesia to look at the possibility of long-term energy contracts, according to the signed trade agreement.

Since the tariff offensive began last year, Pertamina has struck some MoUs with the Texas-based oil giant ExxonMobil and another powerhouse Chevron. It has also signed a deal with KDT Global Resources, a trading firm specializing in energy products. Just two days ago, Pertamina clinched an MoU related to oil field recovery with the top-tier oil services provider Halliburton. There is also another series of freshly clinched deals involving Hartree Partners LP and Phillips 66.

The Central Statistics Agency (BPS) data showed Indonesia’s annual oil and gas imports from ASEAN nations totaled $15.2 billion in 2025, about $9.7 billion of which had come from Singapore. Another $5.3 billion was of Malaysian origin. The overall oil and gas imports neared $32.8 billion that year.

Read More: Indonesia Swallows US Poison Pill in New Trade Deal as Trump Isolates China

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