Indonesia plans to increase oil and LPG imports from US to avoid 32% duty

By Alimat Aliyeva

As part of upcoming negotiations with the United States over tariffs, Indonesia intends to offer a significant boost in imports of crude oil and liquefied petroleum gas (LPG) from the U.S., aiming for an increase of approximately $10 billion, Azernews reports.

The Indonesian delegation is scheduled to travel to Washington on April 15 to discuss proposed U.S. trade duties and potential adjustments to existing trade agreements.

“Indonesia plans to purchase between $18 billion and $19 billion worth of American goods as part of efforts to reduce the trade surplus with the United States and prevent the imposition of a 32 percent tariff on Indonesian exports,” according to a government report.

Indonesian Minister of Energy and Mineral Resources, Arifin Lahadalia, highlighted that the Department of Energy has recommended increasing the import quota for U.S. LPG as a key component of this strategy. This move is seen as a way to strengthen economic ties and balance the trade relationship.

Lahadalia also noted that U.S. LPG currently makes up about half of Indonesia’s total LPG imports, underlining the importance of American energy products in Indonesia’s fuel supply chain.

Indonesia’s decision to increase imports of U.S. energy products is part of a broader strategy to reduce trade imbalances, but it also highlights the growing global importance of liquefied petroleum gas (LPG) in emerging economies. As Indonesia continues to expand its infrastructure and industrial capabilities, increased LPG imports are seen as crucial for supporting its energy needs, particularly in sectors like manufacturing and transportation.

Furthermore, this move could also enhance the geopolitical relationship between the U.S. and Southeast Asia, positioning Indonesia as a key player in the region’s energy landscape.