Indonesia Holds Off on U.S. LNG Imports as Domestic Output Remains Sufficient

Main Takeaways

● Indonesia has no current plans to import LNG from the United States due to sufficient domestic production. ● The Energy Ministry reports local LNG supply met national demand in the first quarter of 2025. ● Export commitments from previous years limit flexibility in redirecting LNG output for domestic use. ● Coordinating Minister Airlangga Hartarto suggests the government may still increase U.S. LNG and LPG imports as part of trade diplomacy following the 32% U.S. reciprocal tariff.

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JAKARTA, investortrust.id – Indonesia’s energy authorities have no immediate plans to import liquefied natural gas from the United States, as current domestic output remains sufficient to meet national demand.

Secretary General of the Energy and Mineral Resources Ministry Dadan Kusdiana said the country has successfully optimized domestic LNG production in the first quarter of 2025. This approach aligns with President Prabowo Subianto’s broader agenda for energy self-sufficiency and national resilience.

“We’ve ensured LNG supply through domestic production during the first three months of this year,” said Dadan on Friday, April 11, 2025, after a meeting at the Regulatory Agency for Upstream Oil and Gas (BPH Migas) in Jakarta.

The Energy and Mineral Resources Ministry, or ESDM, is committed to strengthening Indonesia’s energy independence, one of the key objectives under Prabowo's Asta Cita, a set of national development goals.

“In an ideal scenario, we want to be fully self-reliant. It’s much better if we produce and consume our own LNG,” Dadan emphasized.

However, he acknowledged that supply-side challenges remain. A portion of Indonesia’s LNG output is still tied up in export contracts signed years ago, limiting flexibility for domestic use as national consumption rises.

“Some of our LNG is committed to exports under longstanding agreements. These were made in the past, and now our domestic needs are growing. That’s what we’re working on now,” he explained.

Earlier this week, Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the government was preparing to increase imports of both LPG and LNG from the United States. This was presented as a strategic response to the U.S. government’s reciprocal tariff of 32% on certain Indonesian exports.

“In line with the President’s directives and discussions with the Minister of Energy and Mineral Resources, we are preparing to purchase more LPG and LNG from the U.S.,” Airlangga said during the Economic Roundtable with the President held at Menara Mandiri in Jakarta on Tuesday, April 8, 2025.

While Indonesia explores ways to balance trade relations with the U.S., officials remain focused on maximizing the country’s domestic energy capacity.