Airlangga: Buy Oil From The US Without Auction From The Resipprocal Agreement Section

JAKARTA - The government has opened its voice regarding the plan to purchase oil from the United States (US) by PT Pertamina (Persero) without going through the auction process.

Coordinating Minister for Economic Affairs Airlangga Hartarto explained that the purchase policy without tender was part of a trade cooperation package in a reciprocal tariff scheme with the US, which has now entered the final phase of negotiations.

He added that if the agreement is reached and implemented, the government will issue a derivative regulation in the form of PP or Perpres, including regulations regarding the commercial mechanism for buying oil and gas from the US which can later be assigned to Pertamina.

"So (it) is part of the reciprocal tariff, we are still in negotiations. If it comes to an agreement to be followed up, there will be derivatives of PP and Perpres, one of which is related to commercial oil and gas purchases from America, one of which will be assigned to Pertamina," he told the media crew, Monday, November 17.

Airlangga added that the volume of oil and gas purchases from the US is estimated at around 15 million barrels.

"The volume for oil and gas is around 15 million (per barrel)," he explained.

On the other hand, Airlangga said that several private companies had stated that they had the ability to import up to 5 million tons of LPG, including one that had just been inaugurated by President Prabowo Subianto, the New Ethhylene Project factory owned by PT Lotte Chemical Indonesia (LCI) in Cilegon.

Airlangga said that access to energy imports from the US was not only intended for Pertamina, but also for other business actors.

"Yes, that means it is also opened to other parties who plan to buy energy from America," he explained.

Airlangga emphasized that the target for finalizing the reciprocal agreement is until December this year.