Indonesia Secures $15 Billion U.S. Energy Deal, Vows LPG and Pertalite Prices Will Stay Flat

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JAKARTA, investortrust.id — Indonesia will import up to $15 billion worth of energy commodities from the United States, including crude oil, refined fuels, and liquefied petroleum gas (LPG), as part of a broader trade agreement that has reduced reciprocal tariffs imposed by Washington.

Minister of Energy and Mineral Resources Bahlil Lahadalia said the government is ensuring that these imports will not impact the state budget allocated for subsidized fuel programs, such as the 3-kilogram LPG canisters and Pertalite gasoline.

“We have done the math so that these imports won’t disrupt the subsidy structure,” Bahlil told reporters at the Energy Ministry office in Jakarta on Friday, July 18, 2025. “The goal is mutual benefit—Indonesia should get the most efficient prices possible.”

The deal follows a successful bilateral negotiation between President Prabowo Subianto and U.S. President Donald Trump, which cut the average import tariff on Indonesian products to 19%, down from 32%. In exchange, Indonesia agreed to increase imports of American energy commodities.

B2B Scheme with U.S. Firms

Unlike traditional government-to-government agreements, the new energy imports will be executed through a business-to-business (B2B) model. PT Pertamina (Persero), the state-owned oil and gas company, has been designated to handle the transactions directly with U.S. firms.

“With this negotiation finalized, we at the Ministry will follow up with Pertamina to prepare the next steps,” Bahlil said.

The transaction scope includes crude oil, refined petroleum products (BBM), and LPG. Notably, liquefied natural gas (LNG) is excluded from the agreement.

“From what I know, we’re talking about $10 billion to $15 billion worth of energy imports—mostly LPG, crude, and BBM,” Bahlil said.

Balancing Trade, Protecting Subsidies

The deal is expected to help rebalance the U.S.-Indonesia trade relationship, which has been under scrutiny in recent years due to a widening surplus on Indonesia’s side. Officials hope that increased energy imports will boost U.S. exports while ensuring affordability for domestic consumers.

A photo published alongside the announcement shows Bahlil inspecting a 3-kg LPG distribution agent in Surabaya earlier this year, highlighting the government’s ongoing commitment to ensuring access to subsidized fuels.

Bahlil reaffirmed that despite the scale of the deal, consumers should not expect price increases for regulated fuels like Pertalite or 3-kg LPG canisters.

‘Exceptional’ Negotiation by Prabowo

Bahlil praised President Prabowo's role in securing the tariff concessions from the U.S., calling the president’s negotiating ability “above average.”

“We should appreciate the negotiation directly handled by President Prabowo with President Trump. This is a significant diplomatic win for Indonesia,” he said.

The tariff reduction is part of a wider framework under which Indonesia is offering reciprocal benefits to the U.S., including energy imports and other market access measures.