Indonesia to Boost U.S. Oil and LPG Imports in Trade Tariff Talks

Indonesia plans to increase its imports of crude oil and liquefied petroleum gas from the United States by $10 billion during tariff negotiations. The move aims to eliminate trade surplus with the U.S. and avoid a 32% tariff on its exports. Energy Minister Bahlil Lahadalia leads the discussions.

In a strategic move to counter a looming 32% tariff on its exports, Indonesia intends to ramp up its imports of crude oil and liquefied petroleum gas from the United States by approximately $10 billion. Energy Minister Bahlil Lahadalia announced the proposal as part of ongoing tariff negotiations.

Indonesian delegates are en route to Washington, where they will propose purchasing U.S. goods valued between $18 billion and $19 billion. This initiative forms part of an effort to offset Indonesia's trade surplus with the U.S., which has cast a shadow over potential trade tensions.

Energy considerations are crucial to this strategy. The Indonesian energy ministry has suggested hiking LPG imports from the U.S., while lowering imports from other countries by up to 30%, according to Putra Adhiguna of Energy Shift Institute. Pertamina, the state energy firm, is currently reviewing import strategies pending government instructions.

(With inputs from agencies.)