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
Dear Mr. President, Don’t Skip ASEAN Summits
Despite calls for Prabowo to stay home, the Indonesian leader still needs to attend ASEAN summits.Indonesia Allocates Rp 10.3 Trillion to Bring Electricity to Thousands of Villages
Indonesia will spend Rp 10.3 trillion in 2026 to expand electricity access to thousands of underserved villages.Indonesia Faces Medium-Calorie Coal Supply Shortage for Power Plants, Minister Says
Indonesia faces a shortage of medium-calorie coal for power plants, prompting a review of supply and pricing policies.Indonesia on Track to Launch B50 Palm Oil Biodiesel in July
Indonesia has done road trials on heavy equipment and trains as the country will soon mandate the use of B50 palm oil-based biodiesel.No CNG Allocation in 2027 Budget as Indonesia Seeks to Cut LPG Imports
Indonesia's 2027 budget keeps LPG subsidies unchanged, with no dedicated funding for the planned CNG transition.Indonesia Allocates $84.6 Million for Electric Stoves and E-Motorcycle Conversion Program
Indonesia will spend Rp 1.5 trillion on electric stoves and e-motorcycles to cut fuel imports and boost clean energy use.Indonesia Spends Rp 120 Trillion a Year on LPG Imports, Pushes Electric Stove Program
The initiative is also intended to reduce the fiscal burden of subsidizing 3-kilogram LPG cylinders widely used by low-income households.Indonesia Eyes Up to 19 Million Kiloliters of Subsidized Diesel in 2027
Subsidized diesel remains heavily supported by the government and is currently sold at Rp 6,800 ($0.38) per liter.Bahlil Rejects Coal Shortage Claims Behind Widespread Power Outages
Bahlil says recent power outages were caused by technical issues, not coal shortages, with domestic supplies remaining secure.Indonesia Holds Subsidized Fuel Prices as Drivers Abandon Pertamax
Indonesia kept subsidized fuel prices unchanged despite a steep Pertamax hike that triggered long queues for cheaper fuel.The Latest
Dear Mr. President, Don’t Skip ASEAN Summits
Despite calls for Prabowo to stay home, the Indonesian leader still needs to attend ASEAN summits.PLN Rushes Coal Supplies After Power Outages Hit Java
PLN is rushing to secure coal supplies after shortages triggered rolling blackouts across Java, disrupting businesses and daily life.Japan-Backed ADB Invests in Indonesia’s Human Capital
As many as 399 Indonesian awardees have joined the ADB-Japan Scholarship Program from 1988 to 2024.Indonesian Stocks Rise Despite Foreign Outflows as MSCI Review Looms
Indonesia's JCI rose 2.8% as easing geopolitical tensions offset foreign outflows, MSCI concerns and rupiah pressures.World Cup 2026: Paraguay Holds Off Turkey With 10 Men to Keep Knockout Hopes Alive
Matias Galarza scored after 65 seconds as 10-man Paraguay beat Turkey 1-0, eliminating the Turks and securing first place for the US.Most Popular
