JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia revealed that Indonesia will shift all crude oil imports from the Middle East to the United States (US).
Bahlil said that currently Indonesia imports crude oil by 25 percent of total imports from the Middle East region. Meanwhile, the rest is supplied from other countries, such as Angola in Africa, the US, and Brazil.
"25 percent of the total crude we order from the Middle East will be diverted (to the US)," said Bahlil, Tuesday, March 3, 2025.
According to him, this step was taken as an effort to mitigate the heating of the conflict between Israel, the US, and Iran, as well as the closure of the Strait of Hormuz, which is the main route for global energy distribution.
The Golkar Party Chairman said that the Strait of Hormuz is a crucial route for around 20.1 million barrels of oil per day for global supply needs.
"Where are the 20.1 million barrels, including Indonesia's imports from the Middle East through the Strait of Hormuz," continued Bahlil.
Furthermore, Bahlil said that this import diversion was part of the trade agreement Agreement on Reciprocal Trade (ART) between Indonesia and the US.
In this agreement, Indonesia will buy energy products worth 15 billion US dollars or around Rp. 253 trillion.
"The ART document that we are pressing is one of our commitments, namely that we buy fuel, crude, and LPG in America, which is approximately 15 billion US dollars, and this is a part that even though it has been decided in court to be annulled, but we must have a commitment," said Bahlil.
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