Indonesia Plans Over $10 Billion in Oil and LPG Imports from U.S. to Offset Trade Surplus
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JAKARTA, investortrust.id – Indonesia plans to increase its imports of crude oil and liquefied petroleum gas (LPG) from the United States to more than $10 billion, in a move designed to ease trade tensions following Washington’s adoption of a new reciprocal tariff policy.
The initiative comes as a response to the U.S. government's plan to impose a 32% import tariff on Indonesian goods. The Indonesian government attributes this policy shift to its persistent trade surplus with the U.S., which reached $14.6 billion in 2024, according to data from Statistics Indonesia.
Speaking on Tuesday, Energy and Mineral Resources Minister Bahlil Lahadalia said the import expansion is part of broader negotiations initiated under President Prabowo Subianto’s directive to rebalance the trade relationship.
“To maintain a healthy trade balance, as instructed by President Prabowo Subianto, we are identifying commodities that can be purchased from the U.S.,” Bahlil said during a press briefing at the Jakarta International Convention Center.
Bahlil explained that his ministry has proposed a significant increase in oil and LPG imports from the U.S. Currently, American crude accounts for just 4% of Indonesia’s total oil imports, while LPG from the U.S. makes up about 54% of total LPG imports.
“We have proposed that oil and LPG imports from the United States be raised to a level exceeding $10 billion,” said Bahlil, who previously served as Indonesia’s Minister of Investment.
He added that the increased imports are intended to neutralize Indonesia’s trade surplus with the U.S., or at the very least, bring it closer to balance. However, he emphasized that this would not mean the end of imports from other countries.
“It’s not about terminating imports from other countries. It’s about adjusting the volume. We're still calculating the impact and feasibility,” he said.
The potential shift in energy sourcing reflects Indonesia's strategic approach to diplomacy through trade, as it navigates a more protectionist stance from Washington and attempts to safeguard its export access to the U.S. market.