Elpiji Imports From The Middle East Are Cut, Indonesia Focuses On Adding Supply From The US

JAKARTA - The government will cut imports of LPG from Middle Eastern countries. On the other hand, the government will increase the volume of LPG imports from the United States (US).

"This LPG import is from the Middle East to America. So later there may be an import switch from the Middle East to imports from America," said Deputy Minister of Energy and Mineral Resources Yuliot at the Ministry of Energy and Mineral Resources, Jakarta, Friday, July 4.

Even so, Yuliot emphasized that the government is still calculating the volume of LPG imports from Uncle Sam's country.

"Yes, the volume (import) hasn't yet," he said.

For your information, in an effort to negotiate tariffs to the US, the government plans to spend US$15.5 billion on state spending or equivalent to Rp250.87 trillion. Consisting of LPG and crude or crude.

Yuliot revealed that Indonesia's energy expenditure to Amarika Serika was USD 4.2 billion in 2024.

Referring to the 2025 spending plan, there is an almost four-fold increase.

This step was taken to balance the trade balance with Uncle Sam's country.

"So, for this year, according to our commitment to trade balance between Indonesia and America, this will adjust to negotiations," he explained.

Yuliot also highlighted the success of neighboring Vietnam in cutting the reciprocal rate applied by the US after negotiating.

The rate is cut from 46 percent to 20 percent.

"So the same steps will also be taken by Indonesia on how to trade balance. So for the tariffs set by America later, we should not be higher than other countries," he said.

For your information, US President Donald Trump himself will impose a reciprocal tariff policy. The US will impose an import duty of 32 percent for Indonesia.

Currently, the government is negotiating trade rates with the United States government.

The technical team from both countries has also exchanged information to continue the negotiations.

If the negotiations set by the government and the US government fail, then the reciprocal rate will take effect from July 9, 2025.