Indonesia to Cut ASEAN Import to Make Room for $15 Billion US Energy
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".
"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
Tags: Keywords:Related Articles
Kalimantan's $891 Million Offshore Gas Projects Set to Boost Production by Nearly 65%
"With existing production in the area currently at 450 MMSCFD, we expect total output to reach 750 MMSCFD by Nov. 1," Bahlil said.Energy Minister Bahlil Plans Gas-Based Petrochemical Hub in East Kalimantan
Indonesia plans a gas-based petrochemical hub in East Kalimantan to boost industrial output, create jobs and raise regional revenue.Bahlil Weighs Ending Gas Export Contracts to Prioritize Domestic Supply
Bahlil Lahadalia says Indonesia may stop renewing gas export contracts with neighboring countries to prioritize domestic energy needs.Bahlil: No Golkar Chairman Has Ever Become Indonesia's President
Sudharmono, who served as vice president under President Suharto, was the highest-ranking government official among Golkar's former chairmenBali Fuel Queues Persist Despite Odd-Even License Plate Rule
Bali’s fuel queues persist despite odd-even license plate rules and purchase limits, disrupting residents’ daily activities.Indonesia Says Subsidized Fuel Stocks Cover 16–18 Days
Indonesia says fuel reserves remain adequate, with Pertalite stocks covering 16–18 days as Pertamina boosts deliveries.Indonesia Opens New LPG Plant in West Java to Reduce Import Dependence
Bahlil said the plant was expected to supply around 15% of LPG demand in Jakarta and West Java.Bali Orders Three Days of Remote Work, Online Classes Amid Fuel Shortage
Bali introduces remote work and online classes for three days as fuel shortages disrupt travel across the island.Indonesia Aims $45 Billion Nickel Exports in 2026
Indonesia's nickel exports neared $34 billion in 2024, government data showed.IMF Upgrades Indonesia’s 2026 Growth Forecast to 5.1%
Indonesia has yet to beat Vietnam as the fastest-growing ASEAN economy.The Latest
Ye Concert, Other Events to Draw 130,000 to GBK, Here’s What to Know
Around 130,000 visitors are expected at Jakarta’s GBK on Saturday as Ye’s concert and several major events take place.Indonesia Allocates Rp 722 Billion for Year-End Flight Ticket Tax Relief
Indonesia allocates Rp 722 billion to cover domestic flight ticket VAT during the 2026/2027 Christmas and New Year holidays.Greece Floats Shipbuilding Partnership with Indonesia
Greece says that it possesses “extensive expertise” as it woos Indonesia in shipbuilding partnership.Indonesian Stocks Rally 4.9%, but Foreign Investors Keep Selling
Indonesia’s JCI rose 4.9% last week, but foreign selling and MSCI downgrade risks continue to cloud the market outlook.Ye Concert in Jakarta to Deploy 2,000 Security Personnel
More than 2,000 personnel will secure Ye’s Jakarta concert on Saturday, as organizers urge fans to use public transport.Most Popular
