Jakarta – Observers assess the government’s plan to import up to USD 15 billion of oil and gas from the United States as part of its supply diversification efforts, potentially burdening national logistics and posing a risk to domestic stock stability.
Executive Director of the Reforminer Institute, Komaidi Notonegoro, on Thursday, July 24, assessed that oil and gas imports from the US must be carefully considered in all aspects. “So far, we are used to importing from neighbouring countries such as Singapore and Malaysia. If suddenly the volume from the US jumps dramatically, from USD 2 billion to USD 15 billion, it will change the entire structure of our supply chain,” said Komaidi.
Komaidi highlighted that oil and gas shipments from the United States, particularly from Texas or the Gulf of Mexico region, take 30 to 40 days to travel, significantly longer than imports from Africa or the Middle East, which typically take 10 days on average. This has consequences for the cost of ship rental and insurance, as well as the impact of delays, which directly affect the resilience of national stocks, with a maximum of only 23 days.
The planned increase in oil and gas imports from the US will automatically shift the portion of supply from other countries, especially Singapore, which has been Indonesia’s largest supplier of petroleum oil products.
“Singapore is not only a supplier, they are also a major investor in our energy sector. If it is shifted, of course, there are political and economic implications that must be considered. Moreover, our bilateral relations with the ASEAN region are very close,” Komaidi explained.
Based on 2024 data, petroleum gas products from the United States showed an increasing trend, with a value of USD 2.03 billion, up from USD 1.54 billion in the previous year. However, for petroleum oil products, the US contributed only USD19 million, far below that of neighbouring countries.
There must be clarity on the scheme
Komaidi also questioned the mechanism for purchasing oil and gas from the US. If it is done directly from America, then logistical challenges are real. However, if purchases are made through US companies operating in third countries, such as Singapore or Qatar, a clear swap system or bilateral agreement must be established.
“We don’t know what the deal scheme is. Is it from the US directly? Or from Exxon in other countries? This needs to be disclosed to the public so that people know the real context,” said Komaidi.
In the midst of global efforts to encourage energy transition, Indonesia continues to show that oil and gas still play a strategic role in maintaining national economic stability and is an important bargaining tool in international trade negotiations.
“Oil and gas have not sunset, the proof is that the government still relies on this commodity for energy security and diplomacy. But decisions must be based on data and careful calculations. Don’t just because of the moment or political pressure, we take big logistical and economic risks,” concluded Komaidi. (Hartatik)
Banner photo: Image generated by OpenAI’s DALL·E via ChatGPT (2025)
