Pertamina: Trade Agreement between RI-US will strengthen National Energy Resilience

JAKARTA - President Director of PT Pertamina (Persero) Simon Aloysius Mantiri said the Indonesia-United States (US) trade agreement would strengthen national energy resilience, especially through increased imports of Liquefied Petroleum Gas (LPG) from the US.

Simon said that Pertamina has been importing large quantities of LPG from the US with a share of around 57 percent. "With this trade agreement, of course we will be able to increase, up to 70 percent," he said in a virtual press conference from Washington D.C., Friday, February 20, reported by ANTARA.

The Central Statistics Agency (BPS) recorded the value of Indonesian LPG imports in 2024 reaching around US$3.8 billion or equivalent to Rp64.1 trillion (exchange rate of Rp16,888 per US dollar).

Of this amount, imports from the US dominated with a value of around 2.03 billion US dollars or Rp34.3 trillion, covering around 53 percent of total imports or 3.94 million tons.

The second country that contributed to LPG imports for Indonesia was Qatar with a value of 0.4 billion US dollars (Rp6.7 trillion) or 11 percent, followed by the United Arab Emirates (UAE) with 0.39 billion US dollars (Rp6.6 trillion) or 10 percent.

In addition to LPG, Simon also stated that Pertamina would encourage an increase in crude oil imports from the US, while for processed oil products, negotiations would be carried out with partners in America.

More specifically, energy imports worth US$15 billion (Rp253.3 trillion) from the US are part of a strategy to diversify energy sources to ensure supply at competitive prices.

"In addition to sources from Southeast Asia, the Middle East, and Africa, we also see great opportunities from the United States," he said.

Simon emphasized that all import processes were still carried out through the mechanism of open tender and bidding, not direct appointment, to ensure transparency.

This trade agreement is a win-win solution for both countries, while still respecting each other's regulations.

"In the next 90 days we are waiting for finalization, with the support of the government in the form of decisions and permits. Everything is done according to the procedures and rules in force," he said.

The Indonesian and US governments on Thursday (19/2) officially signed points of agreement on a reciprocal tariff agreement, one of which contains certainty of the purchase of energy commodities from the US worth a total of 15 billion US dollars.

The value includes the purchase of LPG of 3.5 billion US dollars (Rp59.1 trillion), crude oil of 4.5 billion US dollars (Rp76.0 trillion), and refinery gasoline of 7 billion US dollars (Rp118.2 trillion).