Indonesia Seeks to Avert US Tariffs with $10B Energy Import Offer

Key Proposal:

• 🇮🇩 Indonesia will propose $10B in additional US energy imports (crude oil + LPG) during tariff talks in Washington.
• Total Offer: $18–19B in US goods purchases to eliminate its trade surplus and avoid a 32% US tariff on Indonesian exports.

Breakdown of Current Imports (2023 Data):

Product	Total Imports	Top Suppliers	US Share
LPG	217K bpd	US (124K bpd), Qatar (23K), UAE/Saudi (~20K each)	57%
Crude Oil	306K bpd	Nigeria, Saudi Arabia, Angola	4% (13K bpd)

Why It Matters:

1. Tariff Threat: US proposed 32% duties on Indonesian metals, textiles, and other goods—a move tied to Trump’s trade rebalancing agenda.
2. Energy Shift: Indonesia may cut LPG imports from Middle East/Qatar by 20–30% to accommodate more US supply.
3. Pertamina’s Role: State firm awaiting gov’t directives but reviewing import contracts.

Challenges:

• 🛢️ Crude Compatibility: US light shale oil may not suit Indonesian refineries designed for heavier grades.
• ⏳ Contract Hurdles: Existing LPG deals with Qatar/UAE could complicate quick pivots.

What’s Next?

• Washington Talks: US likely to demand binding purchase commitments in exchange for tariff exemptions.
• Market Ripple Effect: Middle East suppliers (Qatar, UAE) could lose market share if deal proceeds.