Indonesia To Regulate US$15 Billion US Energy Imports

Faizan Hashmi Published July 19, 2025 | 12:00 AM

(UrduPoint / Pakistan Point News / WAM - 19th Jul, 2025) JAKARTA, 18th July, 2025 (WAM) - Energy and Mineral Resources Minister Bahlil Lahadalia is preparing a regulation for planned energy imports, worth up to US$15 billion from the United States (US), following a recent tariff agreement between Indonesia and the US.

“The Ministry of Energy and Mineral Resources must take steps to follow this up with Pertamina (state-run oil and gas company),” he told the press in Jakarta on Friday.

Lahadalia affirmed that he would hold a technical meeting with Pertamina to discuss the energy commodities to be imported. Crude oil and liquefied petroleum gas (LPG) have so far been agreed upon.

Pertamina has signed a memorandum of understanding (MoU) with its partner in the US for crude oil. Meanwhile, the increase in LPG imports from the US is still in the exploratory stage.

Earlier, Vice President of Corporate Communications at Pertamina, Fadjar Djoko Santoso, stated that Pertamina had signed an MoU with its partner in the US to purchase crude oil.

According to Indonesian news agency (ANTARA), he noted that the signing of the MoU is part of Indonesia's proposal to the US to lower the US reciprocal tariff, which was earlier set at 32%.

Furthermore, Pertamina plans to increase the share of LPG imports from the US to 60% of its total LPG imports. In 2024, LPG imports from the US accounted for 57% of Pertamina's total LPG imports.

Earlier, US President Donald Trump wrote on Truth Social that he and Indonesia President Prabowo Subianto had reached a deal that “opens up Indonesia’s entire market to the United States for the first time in history.”

He stated that under the agreement, Indonesia will pay a 19% tariff on every product it exports to the US, while US exports to Indonesia will be exempt from tariff and non-tariff barriers.

Trump further highlighted that Indonesia has committed to purchasing US$15 billion worth of energy, importing US$4.5 billion of agricultural products, and acquiring 50 Boeing aircraft from the US.