JAKARTA, April 16 — Indonesia will propose increasing its imports of crude oil and liquefied petroleum gas (LPG) from the United States (US) by around US$10 billion (RM44.1 billion), as part of its tariff negotiations, energy minister Bahlil Lahadalia told local media yesterday.
Indonesian officials are set to leave for Washington later on Tuesday for negotiations over the proposed US trade tariffs.
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Indonesia's Investment Minister Bahlil Lahadalia gestures during an interview at his office in Jakarta, Indonesia, on May 3, 2023. — Picture by REUTERS[/caption]
In total, Indonesia plans to buy US goods worth US$18 billion (RM79.4 billion) to US$19 billion (RM83.8 billion) as it seeks to eliminate its trade surplus with the US and avoid a threatened 32 per cent tariff on its exports.
Bahlil said the energy ministry recommended increasing the US LPG import quota and importing more US crude to help reach the target.
To make room, think tank Energy Shift Institute managing director Putra Adhiguna said Indonesia would need to cut LPG imports from other origins. Depending on existing contracts, Indonesia could start by reducing its LPG imports from non-US sources by 20 per cent to 30 per cent.
Kpler data show that Indonesia imported 217,000 barrels of LPG per day last year, around 124,000 bpd of which came from the US. Around 23,000 bpd were imported from Qatar, while the United Arab Emirates and Saudi Arabia each contributed around 20,000 bpd.
Indonesia also imported around 306,000 bpd crude oil last year, with Nigeria, Saudi Arabia and Angola as the top suppliers. Around 13,000 bpd were imported from the US.
When asked about the US' LPG import proposal, a spokesperson at state energy firm Pertamina, the biggest LPG retailer, said the company is conducting reviews of its imports and awaiting instructions from the government.
— Reuters
