Indonesia's Strategic Shift: Boosting U.S. Energy Imports Amid Tariff Talks

Indonesia plans to increase its imports of U.S. crude oil and liquefied petroleum gas by around $10 billion as part of ongoing tariff negotiations. This move aims to eliminate Indonesia's trade surplus with the U.S. and prevent a possible 32% tariff on its exports.

Indonesia is planning to increase its imports of crude oil and liquefied petroleum gas from the United States by approximately $10 billion, according to energy minister Bahlil Lahadalia. This initiative forms a crucial component of the ongoing tariff negotiations with Washington, as revealed on Tuesday.

A delegation of Indonesian officials is set to depart for Washington to negotiate the proposed U.S. trade tariffs. Indonesia is aiming to purchase American goods worth $18 billion to $19 billion in total, in an effort to eliminate its trade surplus with the U.S. and avert a threatened 32% tariff on its exports.

As part of this strategy, the Indonesian energy ministry has advised increasing the import quota for U.S. LPG, as well as importing more U.S. crude. This move would require Indonesia to cut down on LPG imports from other countries. Currently, Indonesia imports a significant portion of its LPG from the U.S., alongside contributions from Qatar, the UAE, and Saudi Arabia, while crude oil imports primarily come from Nigeria, Saudi Arabia, and Angola.

(With inputs from agencies.)