US Energy Imports A Bridge To Indonesia’s Domestic Supply Gap - Pertamina

JAKARTA, Feb 21 (Bernama) -- Energy imports from the United States remain necessary to bridge Indonesia’s domestic supply gap amid declining natural production, said Pertamina (Persero) President Director Simon Aloysius Mantiri.

He said the import scheme serves as a transitional measure towards achieving national energy self-sufficiency.

“This import scheme is our bridge towards energy independence. To meet the current gap, we still require imports,” he said during a virtual press conference from Washington, according to ANTARA News Agency, on Friday night.

On Thursday (Feb 19), Indonesia and the US signed the key points of a reciprocal tariff agreement, which includes a commitment for Indonesia to purchase US energy commodities worth US$15 billion (approximately RM253.3 billion).

The value comprises liquefied petroleum gas (LPG) worth US$3.5 billion, crude oil worth US$4.5 billion and refined fuel products worth US$7 billion.

Simon said Pertamina, as the national oil and gas company, together with the Energy and Mineral Resources Ministry, SKK Migas and all production sharing contract contractors (K3S), continues efforts to increase oil and gas lifting.

However, he stressed that declining natural production makes imports a strategic option.

Meanwhile, Indonesia’s Energy and Mineral Resources Minister Bahlil Lahadalia clarified at the same press conference that the US$15 billion trade deal does not increase the country’s total energy import volume, but instead reallocates existing import quotas from other regions.

He said part of the quota previously sourced from Southeast Asia, the Middle East and Africa would be shifted to the US.

On the other hand, Simon assured that the US$15 billion energy agreement would be implemented transparently and in accordance with prevailing regulations in both countries.

He noted that the agreement forms part of Indonesia’s broader energy supply diversification strategy to secure competitive pricing for both crude oil and refined products.

Following the signing, he said Pertamina is awaiting finalisation within the next 90 days, with all procedures to be carried out in line with regulatory requirements and supported by the necessary government approvals and technical arrangements.

-- BERNAMA