Jakarta—The Indonesian government has officially expanded energy trade cooperation with the United States (US), one of which is increasing the volume of imports of LPG gas, crude oil, and fuel oil (BBM) from the country. The move is part of an economic diplomacy strategy to balance the bilateral trade balance without compromising national energy self-sufficiency efforts.
Coordinating Minister for Economic Affairs Airlangga Hartarto confirmed in a press conference on Friday, 18 April, that the increase in imports is only a shift in supplier sources, not an increase in quota.
“We are not increasing total imports, only shifting some purchases from other countries to the United States. Domestic production remains a priority,” he said.
Indonesia’s move to buy more energy and food commodities from the US is also linked to negotiations to reduce high tariffs for Indonesian products entering the American market. “This is part of our strategy to create fairer and more mutually beneficial trade,” Mr Airlangga continued.
According to him, by giving more space to US products in the domestic market, Indonesia hopes that exports of superior products such as textiles, footwear, and palm oil products to the US can be subject to lower tariffs.
In the energy sector, imports that previously came from the Middle East, Africa, and neighbouring countries in Southeast Asia will now be more focused on the US. Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia emphasised that this move will not negatively impact the state budget or the stability of the national energy supply.
“We just switched, we moved to America. There is no additional import quota, no additional fiscal burden either,” said Bahlil.
According to Bahlil, Indonesia has the flexibility to choose its trading partners as exclusive contracts with any supplier country do not bind it. “We don’t have long-term attachments that limit us. This is purely a trade strategy,” he explained.
Food also diverted to the US, not increased
In addition to energy, food products such as wheat and soy are also included in the list of imports that have been shifted from Ukraine and Australia to the United States. However, Airlangga ensures that imports remain within the same limits, and food self-sufficiency will not be eroded.
“We are still maintaining domestic production, and will continue to increase it. It’s just a matter of the origin of the goods. In terms of volume, we still control it,” said Airlangga.
The officials reiterated that this move will not derail President Prabowo Subianto’s administration’s grand agenda to achieve energy self-sufficiency in the next few years. According to Airlangga and Bahlil, strengthening domestic production remains a priority, while imports from the US serve as a bridge for short-term needs and economic diplomacy.
“By maintaining supply and strengthening Indonesia’s position in the global trade chain, we ensure that the direction of self-sufficiency does not change. It is a matter of market adjustment in the national interest,” Airlangga concluded. (Hartatik)
Banner photo: Airlangga Hartarto. Presidential Secretariat YouTube channel screenshot
