Indonesia Eyes $10B Boost in U.S. Crude, LPG Imports to Ease Trade Tensions

Indonesia plans to increase crude oil and liquefied petroleum gas (LPG) imports from the United States by around $10 billion, aiming to reduce its trade surplus and avoid potential U.S. tariffs. Energy Minister Bahlil Lahadalia announced the move ahead of a delegation’s trip to Washington for trade negotiations, where Indonesia hopes to sidestep a proposed 32% tariff on its exports by committing to $18–$19 billion in U.S. purchases.

The proposal includes expanding Indonesia’s LPG import quota from the U.S., which would require cutting imports from other countries. According to Putra Adhiguna of the Energy Shift Institute, Indonesia could reduce non-U.S. LPG imports by 20% to 30%, depending on contractual obligations.

Kpler data reveals Indonesia imported 217,000 barrels per day (bpd) of LPG in 2024, with about 124,000 bpd sourced from the U.S. Qatar supplied 23,000 bpd, while the UAE and Saudi Arabia contributed 20,000 bpd each. For crude oil, Indonesia imported 306,000 bpd, primarily from Nigeria, Saudi Arabia, and Angola. Only 13,000 bpd came from the U.S.

State-owned Pertamina, Indonesia’s largest LPG distributor, said it is currently reviewing its import strategy and awaiting further direction from the government.

This strategic shift in energy imports is part of Indonesia’s broader efforts to maintain favorable trade relations with the U.S. and support domestic energy needs. By strengthening energy ties with Washington, Indonesia aims to secure trade advantages and diversify its energy supply chain. The outcome of the negotiations may play a crucial role in shaping Indonesia’s trade policy and energy sourcing in the near future.