Jakarta – The Association of Oil and Gas Companies (Aspermigas) is urging the government to immediately cancel plans to import oil and gas from the United States after US President Donald Trump officially ignored the Indonesian government’s negotiations on reciprocal tariffs.
“If the US government itself does not give respect to Indonesia’s diplomatic efforts, there is no reason for us to continue purchasing energy from them,” said Aspermigas Investment Committee Chairman Moshe Rizal on Tuesday, 8 July.
According to him, the value of Indonesia’s oil and gas trade with the US is very small, both in terms of exports and imports, so the impact of reciprocal tariffs reaching 32% is almost negligible. The US is not among Indonesia’s top five main trading partners in the oil and gas sector.
Thus, Moshe continued, there is no urgency for Indonesia to continue with its plan to import crude oil and LNG from the US, which is very large.
Energy import plan from the US reaches IDR 251 trillion
In previous negotiations, the Indonesian government plans to allocate up to USD 34 billion, equivalent to IDR 551.1 trillion (an exchange rate of IDR 16,209 per US dollar), for imports from the US. Of that total, approximately USD 15.5 billion, or IDR 251.24 trillion, is intended for the energy sector, including oil and gas.
Indonesia remains subject to a reciprocal tariff of 32%, as trade relations between the two countries do not yet fully reflect the principle of reciprocity. Apart from Indonesia, several other countries are also affected by Trump’s policy, including Bangladesh (35%), Thailand and Cambodia (36%), Bosnia (30%), and Serbia (35%).
Moshe warned that Indonesia does not need to be soft to pressure from Washington. According to him, the US needs Indonesia’s strategic position in Southeast Asia to maintain geopolitical balance, especially in the face of Chinese and Russian influence.
Instead of increasing imports from the US, Moshe suggests that the government start expanding energy cooperation with other countries that are more open and value bilateral relations. According to him, this step will provide long-term benefits and improve Indonesia’s bargaining position in global trade. (Hartatik)
Banner photo: Kodda/shutterstock.com
