By Emmanuel Nduka
Indonesia may reduce its oil and liquefied petroleum gas (LPG) imports from Nigeria.
This is as the country looks to boost energy trade with the United States by up to $10 billion, its Energy Minister, Bahlil Lahadalia, disclosed on Tuesday.
According to a Reuters report citing Kpler data, Indonesia imported about 217,000 barrels per day (bpd) of LPG in 2024, with the U.S. accounting for roughly 124,000 bpd. Crude oil imports totaled approximately 306,000 bpd, sourced mainly from Nigeria, Saudi Arabia, and Angola. Of that, the U.S. supplied only about 13,000 bpd.
To support a broader plan to purchase between $18 billion and $19 billion worth of U.S. goods and avoid a proposed 32% tariff on Indonesian exports, the energy ministry is recommending an increase in LPG and crude oil imports from the U.S.
“This would mean cutting back imports from other countries,” said Putra Adhiguna, Managing Director at the Energy Shift Institute. “Depending on existing contracts, Indonesia could reduce LPG imports from non-U.S. sources by 20% to 30%.”
State energy firm Pertamina, Indonesia’s largest LPG distributor, confirmed that it is reviewing its import strategy in light of the government’s proposal.
Should this policy proceed, oil-exporting nations like Nigeria may see a reduction in their share of Indonesia’s energy import market.
