Indonesia’s Minister of Energy and Mineral Resources, Arifin Tasrif, stated on Monday that the energy trade agreement signed between Indonesia and the United States will not increase the country’s total energy imports, but will only change the source countries of those imports.
He said that Indonesia’s annual demand for liquefied petroleum gas (LPG) is 8.3 million tonnes, while domestic production is only 1.6 million tonnes, with the remaining 7 million tonnes needing to be met through imports. In addition, fuel oil and crude oil are also the main categories of imports. The agreement reached on Wednesday in the United States involves a total procurement value of about $15 billion.
Tasrif emphasized that this move will not increase import volume or affect national energy sovereignty, but will only shift some import sources from other countries to the United States. He stated that the price of LPG supplied by the US is more competitive, and the purchase price will be determined by market mechanisms, which will not place a burden on the country.
According to the terms of the agreement, Indonesia has committed to increasing purchases of energy products from the US, including approximately $3.5 billion for LPG, $4.5 billion for crude oil, and $7 billion for refined fuels, as well as other energy products such as metallurgical coal and clean coal technology.
Tasrif reiterated that all procurements comply with domestic demand while balancing price competitiveness and national interests. “Import volume remains unchanged, we’re just changing the source country. I would never betray my own country.”
Tasrif emphasized that this move will not increase import volume or affect national energy sovereignty, but will only shift some import sources from other countries to the United States. He stated that the price of LPG supplied by the US is more competitive, and the purchase price will be determined by market mechanisms, which will not place a burden on the country.
According to the terms of the agreement, Indonesia has committed to increasing purchases of energy products from the US, including approximately $3.5 billion for LPG, $4.5 billion for crude oil, and $7 billion for refined fuels, as well as other energy products such as metallurgical coal and clean coal technology.
Tasrif reiterated that all procurements comply with domestic demand while balancing price competitiveness and national interests. “Import volume remains unchanged, we’re just changing the source country. I would never betray my own country.”