Jakarta, Indonesia Sentinel — The Indonesian government is considering increasing imports of oil and liquefied petroleum gas (LPG) from the United States as part of a broader trade strategy following Trump imposition of reciprocal tariffs on Indonesian goods.
Indonesia’s Minister of Energy and Mineral Resources, Bahlil Lahadalia, confirmed the government’s plan on Wednesday (April 9) in Jakarta. “We’re currently evaluating oil and LPG as potential commodities to purchase from the United States,” Bahlil states, as reported by Antara.
Bahlil explained that increasing oil and LPG imports from the U.S. is part of Indonesia’s broader effort to help balance its trade surplus with the United States.
According to Bahlil, Indonesia’s trade surplus with the United States stands at between $14 billion to $15 billion, equivalent to roughly Rp237 trillion to Rp254 trillion.
President-elect Prabowo Subianto has instructed key ministries to identify American commodities that could be imported to help rebalance the bilateral trade relationship, particularly in the energy sector.
The initiative also comes as a countermeasure to the 32% reciprocal tariff announced by former U.S. President Donald Trump on Indonesian exports. Indonesia is positioning the increased energy imports as part of a broader negotiation strategy.
Therefore, the government is currently assessing the economic feasibility of increasing oil and LPG import volumes from the United States.
Currently, around 54% of Indonesia’s LPG imports already come from the United States, Bahlil noted that the price competitiveness of U.S. LPG is on par with shipments from the Middle East, despite the longer transport distance.
“Logically, it should be more expensive because of the distance,” Bahlil explained. “But in reality, the cost of LPG from the U.S. is the same as what we pay for Middle Eastern supply.”
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When it comes to oil, Indonesia currently imports only about 4% of its supply from the United States while the majority comes from Singapore, Africa, the Middle East, and Latin America. Bahlil said the government is exploring ways to boost U.S. oil imports without cutting off supply from other countries.
“We’re not halting imports from other nations,” he clarified. “But we may look into adjusting the volumes.”
He emphasized that any decisions on new import deals will take into account economic feasibility to ensure that domestic consumers still benefit from competitive pricing.
The potential import shift signals a new phase in U.S.-Indonesia trade relations, as Jakarta seeks to navigate both economic and political pressures while maintaining energy security and market competitiveness.
(Raidi/Agung)
