Jakarta. Indonesia and the United States have agreed on a series of high-value strategic commitments in trade, energy, and critical minerals, reinforcing Indonesia’s long-term energy security, expanding export market access, and strengthening its position in global energy and mineral supply chains.

The commitments are set out in the Agreement on Reciprocal Trade (ART), finalized during a meeting between Indonesian President Prabowo Subianto and US President Donald Trump in Washington, DC, on Feb. 19 (local time).

As part of the agreement, Indonesia committed to increasing purchases of US energy products with an indicative value of up to $15 billion (Rp 252.94 trillion). The planned imports include approximately $3.5 billion in liquefied petroleum gas (LPG), $4.5 billion in crude oil, and around $7 billion in selected refined fuel products, along with other energy commodities aligned with domestic demand, including metallurgical coal and clean coal technologies.

The plan will be implemented through the signing of a Memorandum of Understanding in the energy sector, with execution carried out in stages and guided by economic feasibility, national demand, infrastructure readiness, and governance considerations.

Energy and Mineral Resources Minister Bahlil Lahadalia said the cooperation is designed to stabilize Indonesia’s energy supply amid global market volatility while ensuring that total import volumes remain unchanged.

“What we are allocating for fuel purchases from the United States does not mean increasing imports,” Bahlil said during a press briefing in Washington on Friday. “We are reallocating part of our existing import volume from several regions, including Southeast Asia, the Middle East, and Africa. Overall, the import balance remains the same.”

Beyond energy trade, Indonesia and the US agreed to deepen cooperation in developing a secure and sustainable critical minerals supply chain. Indonesia reaffirmed its commitment to downstream processing and value-added industrialization, particularly in mineral refining and rare earth development.

“We provide equal opportunities to all countries, including the United States, to invest in Indonesia’s critical minerals sector,” Bahlil said. “This has already happened even before this agreement, with examples such as Freeport.”

As part of the visit, a Memorandum of Agreement was signed between the Investment and Downstream Industry Ministry, Freeport-McMoRan, and Freeport Indonesia to strengthen supply chain integration and expand value-added mineral processing capacity.

The agreement includes an additional 12% divestment of Freeport shares to Indonesia by 2041 at no cost, increasing national ownership while enabling revenue sharing with mining-producing regional governments. The divestment is expected to generate jobs and boost state revenue through higher royalties and taxes, particularly from gold production.

In the upstream energy sector, state oil and gas company Pertamina signed a memorandum of understanding with Halliburton to deploy Enhanced Oil Recovery (EOR) technology. The partnership aims to lift output from existing oil and gas fields while strengthening Indonesia’s upstream technological capabilities.

Expanding Clean Energy
The government also reiterated its commitment to expanding clean energy, particularly bioethanol. Indonesia plans to gradually implement mandatory bioethanol blending, starting with E5 in 2028 and E10 in 2030, with a long-term goal of reaching E20, subject to production and infrastructure readiness.

“The goal is to create new business opportunities in Indonesia,” Bahlil said. “Until domestic production fully meets demand, imports remain an option, including from the United States.”

Overall, implementation of the ART in the energy and mineral sectors will be phased, measured, and aligned with Indonesia’s national interests. The agreement is designed to reinforce energy resilience, attract strategic investment, and support sustainable industrial growth.

“This is fully in line with President Prabowo’s direction,” Bahlil said. “The agreement must be mutually beneficial. It cannot favor one side only—both parties must feel the gains.”

With energy security, critical minerals, and clean energy development at its core, the Indonesia–US partnership signals a long-term, balanced collaboration aimed at delivering tangible benefits for both nations.

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