The Indonesian government will cancel plans to import US$15.5 billion in energy commodities from the United States following the collapse of a trade negotiation agreement. Starting August 1, 2025, Indonesia will remain subject to a 32% reciprocal tariff imposed by Washington.
Indonesia will not file a complaint with the World Trade Organization (WTO), but will retaliate with the same treatment of US products due to US President Donald Trump's reciprocal tariffs. Instead, the Indonesian government will import crude oil from Russia and Iran, potentially reducing Indonesian exports to the US.
Indonesia is not a major trading partner of the United States in the energy sector. If Indonesia continues to insist on importing oil and gas from the US, the State Budget (APBN) will undoubtedly be further burdened.
It is predicted that over the next five years, imports of energy commodities from the United States are at risk of being investigated by the Supreme Audit Agency (BPK), the Attorney General's Office, and the Corruption Eradication Commission (KPK).
This will make officials who sign MoUs with the United States suspects five years after they leave office. Indonesia's president will be replaced five years from now, and this will not make those officials immune from legal action. All officials will be treated equally under the law after they leave office and become ordinary citizens.
Indonesia's State Budget (APBN) will be significantly reduced due to increased Indonesian oil imports. This could be a finding by the Supreme Audit Agency (BPK), the Attorney General's Office, and the Corruption Eradication Commission (KPK), and could lead to major cases in the future, with these officials being caught up in the law.
Indonesia can strengthen its fiscal position, not increase the burden on the State Budget (APBN). Indonesia should also be able to help industry find alternative export markets besides the United States, namely Russia and other potential Middle Eastern countries, as well as China, as a major potential partner for Indonesia.
The specifications of Russian oil are not different from the characteristics and needs of Indonesian oil in general. PT Kilang Pertamina Internasional (KPI) has blending technology to mix oil from anywhere for processing at the PT Kilang Pertamina Internasional (KPI) refinery.
Indonesia will also import fuel from Singapore and the Middle East. Oil and gas imports from Russia are carried out when Indonesia has no other choice due to being caught in a trade war, and Indonesia will maintain a diplomatic stance.
The risks of trading with Russia are indeed very difficult, even though it is under a political embargo. Indonesia will remain neutral, and Russia has been a good friend of Indonesia since before independence and early in its independence, sending the "Pasopati" submarine fleet and crew directly from Russia to fight the Dutch colonialists, supported by the United States and the United Kingdom. So, which country is now robbing Papua's gold mines until 2061? It's clear.
President Prabowo, during a visit to Moscow, stated that the Indonesian people will never forget the services of the Russian Navy, which provided total assistance at the beginning of Indonesia's independence. Due to the needs and difficult situation resulting from the US tariff war, trading with Russia for crude oil imports is a necessity, as a very good, friendly country.
Indonesia submitted a proposal to import US$34 billion in goods in the US tariff negotiations. Indonesia's energy imports to the US amounted to US$15.5 billion, far exceeding the previous estimate of the Ministry of Energy and Mineral Resources (ESDM) of around US$10 billion. This could be a finding of the Supreme Audit Agency (BPK) after five years, in 2030, when the official will no longer be in power, as Indonesia will hold a new presidential election in 2029.
Compared to the total value of Indonesia's oil imports from the US of US$2.49 billion in 2024, this figure is also a significant difference. Indonesia's LPG imports throughout 2024 reached 6.89 million tons, valued at US$3.78 billion. The United States accounted for 3.94 million tons of LPG imports, with a value of US$2.03 billion. In addition to the United States, Indonesia imports LPG from the United Arab Emirates (UAE), Qatar, Saudi Arabia, Iran, and its regular customer, Algeria.
Trump officially announced that he would continue to impose a 32% reciprocal tariff on Indonesia, starting on August 1, 2025. Indonesia thus failed to reach an agreement in the US reciprocal tariff negotiations. Trump wrote a letter to President Prabowo stating that starting August 1, 2025, the US would impose a 32% tariff on all Indonesian products shipped to the US. Goods reshipped to avoid the higher tariffs would be subject to even higher tariffs, the letter stated.
A senior Indonesian official stated that the government had discussed plans to import US$15.5 billion of crude oil from the US out of a total US$34 billion trade proposal submitted to President Donald Trump.
Bargaining was conducted as an offer from Indonesia to the US related to the reciprocal tariff negotiations. Potential commodities for import include crude oil, liquefied natural gas (LNG), and liquefied petroleum gas (LPG).
The Central Statistics Agency (BPS) recorded that Indonesia's oil and gas imports reached US$36.27 billion in 2024. This import volume came from purchases of approximately US$10 billion in crude oil and US$25.92 billion in gas. Indonesia's LPG imports reached 6.89 million tons in 2024, valued at US$3.78 billion. LPG imports from the United States reached 3.94 million tons, valued at US$2.03 billion.
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