Indonesia is planning to increase its crude oil and liquefied petroleum gas (LPG) imports from the United States by approximately $10 billion as part of its strategy to rebalance trade and avert a proposed 32% U.S. tariff on Indonesian exports.
Energy Minister Bahlil Lahadalia confirmed the plan during ongoing tariff negotiations, noting it is part of a broader initiative to purchase U.S. goods worth up to $19 billion.
According to Kpler data cited by Reuters, Indonesia imported 217,000 barrels per day (bpd) of LPG in 2023, with 124,000 bpd coming from the U.S., and 306,000 bpd of crude oil, largely sourced from Nigeria, Saudi Arabia, and Angola. The new proposal would scale back imports from non-U.S. suppliers, particularly in LPG, to accommodate the higher U.S. volumes.
The Energy Ministry has recommended raising the U.S. import quota, and experts suggest Indonesia could reduce 20%-30% of LPG imports from other countries, depending on contract terms. This strategic shift aims to defuse trade tensions and strengthen bilateral energy ties with Washington.