Indonesia to propose $10-B US energy imports increase in toll talks
JAKARTA — Indonesia will propose increasing its imports of crude oil and liquefied petroleum gas from the United States by around $10 billion as part of its tariff negotiations, energy minister Bahlil Lahadalia told local media on Tuesday.
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 $18 billion to $19 billion as it seeks to eliminate its trade surplus with the US and avoid a threatened 32-percent 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 think tank Energy Shift Institute, said, adding it could start by reducing by 20 percent to 30 percent its LPG imports from non-US sources, depending on existing contracts.
Biggest source
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 spokesperson at state energy firm Pertamina, the biggest LPG retailer, said the company is conducting reviews of its imports and awaiting instructions from the government.
