Jakarta – The Indonesian government has confirmed that it will purchase USD 15.5 billion worth of energy products from the United States. This move is part of a trade agreement between the two countries, which is accompanied by a reduction in import tariffs on Indonesian products to the US from 32% to 19%.
Deputy Minister of Energy and Mineral Resources (MEMR) Yuliot Tanjung explained on Friday, August 15, that the energy spending commitment covers Liquefied Petroleum Gas (LPG), crude oil, and fuel oil (BBM).
“Yes, this is a commitment that we will fulfil. The value is around USD 15.5 billion. We will see whether it will be in the form of crude oil, LPG, or fuel from companies that have oil refineries,” said Yuliot.
He added that the government is still discussing the appropriate purchase volume, including the supply capacity of the US and its alignment with national energy needs. “It’s not final yet; we are still consulting on both the supply capacity and its suitability for domestic needs,” he explained.
This agreement was born out of reciprocal tariff negotiations that also covered other sectors. According to the agreement document, the US has set four main conditions for Indonesia: not imposing tariffs on US export products; purchasing energy products worth USD 15.5 billion; purchasing US agricultural products worth USD 4.5 billion; and purchasing 50 Boeing aircraft, mostly 777 series, through Garuda Indonesia.
According to Yuliot, this energy purchase is not only a trade obligation, but also an opportunity to strengthen national energy reserves.
“If the supply meets specifications and the price is competitive, this could also help diversify our energy sources,” he said. (Hartatik)
Banner photo: Deputy Minister of Energy and Mineral Resources (MEMR) Yuliot Tanjung at a press conference, May 16, 2025. (Source: Presidential Secretariat YouTube channel screenshot)
