Jakarta. Indonesia will reduce oil and gas imports from several countries in the Middle East and Asia as part of a new $15 billion energy import agreement with the United States, Energy and Mineral Resources Minister Bahlil Lahadalia said on Monday.

The move follows a broader reciprocal trade deal between Jakarta and Washington, which includes commitments to import US energy products such as crude oil, refined fuels, and liquefied petroleum gas (LPG).

The strategic shift in Indonesia’s energy sourcing is seen as a response to deepening trade ties with the US, and a move to diversify its energy supply chain while securing favorable tariff reductions.

“We will reduce imports from other countries in the Middle East and Asia,” Bahlil told reporters after meeting President Prabowo Subianto at the Presidential Palace in Jakarta.

He added that the government is currently working on a pricing mechanism to ensure the US energy imports remain economically viable. “We’re designing a framework to make sure the pricing is competitive,” he said.

Indonesia has been importing LPG from the United States for some time, Bahlil noted, and plans are in place to further increase the volume, although he did not disclose specific figures.

The energy purchase commitment is one part of a trade arrangement under which the US has agreed to lower import tariffs on Indonesian goods from 32 percent to 19 percent, effective August 1.

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