State-run oil and gas company PT Pertamina has revealed that it is considering raising liquefied petroleum gas (LPG) imports from the United States, as a share of Indonesia’s total LPG imports, to 60 percent.
“The portion of our LPG imports from the United States is already quite high, pegged at 57 percent (as of 2024). It is true that we are considering increasing the figure to 60 percent,” Fadjar Djoko Santoso, Pertamina’s vice president of corporate communications, said.
Speaking in Jakarta on Thursday, he clarified that Indonesia and the US have yet to sign a memorandum of understanding on the projected LPG imports.
He said that Pertamina and its partners in the US have only inked an agreement on the purchase of crude oil.
“We can expect the portion of LPG imports to rise to 60 percent gradually,” Santoso added.
Furthermore, he underlined that the US LPG import plan would not necessarily signify an increase in the total volume of LPG imports—it would merely entail diverting imports from other countries to the US.
He pointed out that the plan may translate into short-term and long-term contracts.
US President Donald Trump has announced that he and President Prabowo Subianto have reached a “landmark deal,” which involves the reduction of the reciprocal tariff rate from 32 percent to 19 percent.
In addition, Indonesia has committed to purchasing energy products worth US$15 billion, importing US$4.5 billion worth of agricultural products, and buying 50 Boeing jets from the US.
The energy procurement deal is consistent with an earlier announcement by Deputy Minister of Energy and Mineral Resources (ESDM), Yuliot Tanjung.
“We might switch our sources of LPG from the Middle East to the United States,” the Indonesian official told reporters in Jakarta on July 5, 2025.
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Translator: Putu Indah, Tegar Nurfitra
Editor: Aditya Eko Sigit Wicaksono
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