Bahlil Affirms No Sale And Purchase Of Oil And Gas With The US If Tariffs Don't Drop

Minister of Energy and Mineral Resources Bahlil Lahadalia. (Photo: Maria Trisnawati/VOI)

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia opened his voice regarding the continuation of the government's plan to import oil and gas from the United States (US).

This is Indonesia's negotiation step on the imposition of a 32 percent reciprocal rate by the United States.

Bahlil firmly said that this plan would only be realized if the reciprocal tariff was lowered.

Just so you know, Indonesia has prepared 15 billion US dollars or around Rp. 251.8 trillion (assuming an exchange rate of Rp. 16,250 per US dollar) to buy oil and gas from the US.

"We from ESDM have allocated around 10-15 billion US dollars for spending (energy) in America, if the tariff is also lowered. But if it's not (deducted), it means there's no deal," he told the media crew at the DPR Building, Monday, July 14.

Bahlil said that currently the government is still waiting for the results of negotiations by the Indonesian team in the US led by the Coordinating Minister for the Economy Airlangga Hartarto.

"Yesterday I didn't know the latest developments, because the one who would say it was the Coordinating Minister as the Head of the Delegation," continued Bahlil.

Previously, Deputy Minister of Energy and Mineral Resources Yuliot Tanjung said the government had communicated with a number of oil and gas companies from the United States regarding plans to import oil and LPG.

So far, he continued, communication has been established with Exxon and Chevron which have jumbo oil production in the US.

"So with several oil producers in America we have also communicated, such as with Exxon," said Yuliot, Tuesday, July 8.

He explained, Exxon is an oil producer of 5.5 million barrels of oil per day, while Chevron produces 3 million barrels per day globally.

So far, he said, the two jumbo oil producers supply oil to Singapore and then are imported by Indonesia.

"So at the time of our indirect position it will be recorded that this is not an export from America but noted from other countries, so this is our record," said Yuliot.