Indonesia to propose US$10 billion US energy imports increase in tariff talks
Indonesia would need to cut LPG imports from other origins by 20 to 30%
[JAKARTA] Indonesia will propose increasing its imports of crude oil and liquefied petroleum gas from the US by around US$10 billion as part of its tariff negotiations, Energy Minister Bahlil Lahadalia told local media on Tuesday (Apr 15).
Indonesian officials are set to leave for Washington later on Tuesday for negotiations over proposed US trade tariffs.
In total, Indonesia plans to buy US goods worth US$18 billion to US$19 billion as it seeks to eliminate its trade surplus with the US and avoid a threatened 32 per cent tariff on its exports.
Bahlil said the energy ministry recommended increasing the LPG import quota for the US, as well as importing more US crude, to help reach the target.
To make room, Indonesia would need to cut LPG imports from other origins, Putra Adhiguna, managing director at thinktank Energy Shift Institute, said, adding it could start by reducing by 20 to 30 per cent its LPG imports from non-US sources, depending on existing contracts.
Kpler data show Indonesia imported 217,000 barrels per day of LPG last year, around 124,000 bpd of which came from the US Around 23,000 bpd were imported from Qatar, while United Arab Emirates and Saudi Arabia each contributed around 20,000 bpd.
Indonesia also imported around 306,000 bpd crude oil last year, with Nigeria, Saudi Arabia and Angola as the top suppliers, Kpler data showed. Around 13,000 bpd were imported from the US.
Asked about the US LPG import proposal, a spokeperson at state energy firm Pertamina, the biggest LPG retailer, said the company is conducting reviews of its imports and awaiting instructions from the government. REUTERS
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