Indonesia’s state-owned energy firm Pertamina is considering importing oil products from the United States as part of efforts to reduce the country’s trade surplus with America, according to a report by Argus on Monday.
The move comes amid ongoing trade and tariff talks, with Jakarta looking to boost imports of U.S. goods—particularly in the energy sector—to ease tensions and avoid steep U.S. tariffs.
Last week, Indonesia’s Energy Minister Bahlil Lahadalia urged Pertamina to proceed with importing American fuel despite higher logistical costs. “There is no excuse [not to import from the U.S.]. We have already imported liquefied petroleum gas [LPG] from the U.S.,” Lahadalia told the Jakarta Globe.
Shipping fuel from the U.S. to Indonesia takes around 40 days, compared to one to two weeks from suppliers in Asia and the Middle East. Still, the Indonesian government appears focused on strategic trade relations rather than just shipping costs.
In early April, President Donald Trump announced “Liberation Day” tariffs targeting several Asian countries, including a proposed 32% tariff on Indonesian imports. These tariffs have been temporarily suspended until early July, giving affected nations time to negotiate.
As part of these negotiations, Lahadalia said earlier this month that Indonesia plans to cut fuel imports from Singapore and instead buy more refined products from the U.S. He emphasized that the decision is not only about pricing but also about balancing geopolitical interests.
In April, Indonesia signaled its willingness to boost energy trade with the U.S. by proposing to purchase an additional $10 billion worth of American oil and LPG. The country, Southeast Asia’s largest economy, hopes this offer will help secure more favorable tariff terms from Washington.
Related Topics:
- Traders Eager to Reenter Russian Crude Market, But the Door Remains Closed
- Oil Prices Rise Due to Venezuela Tariffs
- Iraq Gives BP Final Approval for Kirkuk Oil Development