Energy Ministry says US trade deal does not alter Indonesia's energy independence trajectory
Jakarta (ANTARA) - The Ministry of Energy and Mineral Resources (ESDM) has affirmed that the energy trade agreement between Indonesia and the United States does not alter the direction of national policy in achieving energy independence.
ESDM Ministry spokesperson Dwi Anggia said the fuel import agreement within the deal is part of the process of rebalancing bilateral tariff relations between the two countries and stands separately from the domestic energy policy agenda.
"This is in accordance with the trade agreement between Indonesia and the US to rebalance trade tariffs for both parties, and ultimately we had to agree to purchase fuel from the US. However, this does not mean we are abandoning our commitment to prioritising energy independence," Anggia said in Jakarta on Friday.
Based on the document titled "Agreement between the United States of America and the Republic of Indonesia on Reciprocal Trade," Indonesia has agreed to energy import cooperation from the US totalling approximately US$15 billion.
This figure comprises purchases of liquefied petroleum gas (LPG) worth US$3.5 billion, crude oil worth US$4.5 billion, and refined gasoline worth US$7 billion.
Anggia reaffirmed that the Energy Minister's commitment to reducing dependence on imports of certain fuels, including halting diesel imports, remains on the government's agenda.
The agreement document also does not stipulate any obligation to import diesel, meaning the government's policy to curb diesel imports continues in line with the national policy direction.
According to Anggia, the agreement is commercial in nature within the framework of international trade and does not automatically alter national policies regarding the energy mix, subsidies, or the long-term energy sector strategy.
"These are two different matters — the trade agreement and the energy independence policy," he said.
Beyond the oil and gas sector, the agreement also encompasses critical minerals cooperation aimed at strengthening investment and supply chain integration between the two countries, particularly in developing processing and refining capacity, without stipulating obligations for raw material exports or specific transaction values.
"That is more oriented towards investment cooperation. The details will be discussed further," he said.
Regarding new and renewable energy commodities, including bioethanol, the ESDM Ministry confirmed that no final decision has been made on trade schemes or sales obligations to the US, as all discussions remain at the negotiation stage.
"Everything is still in process and at the negotiation stage. We shall await the results once the delegation returns," Anggia said.
He also noted that to date there have been no further discussions regarding Freeport Indonesia or the promotion of new oil refinery projects within the trade negotiation proceedings.
The government has assured that all final outcomes and follow-up actions from the bilateral trade agreement will be communicated to the public once the negotiation process and cross-ministerial coordination are completed.
ESDM Ministry spokesperson Dwi Anggia said the fuel import agreement within the deal is part of the process of rebalancing bilateral tariff relations between the two countries and stands separately from the domestic energy policy agenda.
"This is in accordance with the trade agreement between Indonesia and the US to rebalance trade tariffs for both parties, and ultimately we had to agree to purchase fuel from the US. However, this does not mean we are abandoning our commitment to prioritising energy independence," Anggia said in Jakarta on Friday.
Based on the document titled "Agreement between the United States of America and the Republic of Indonesia on Reciprocal Trade," Indonesia has agreed to energy import cooperation from the US totalling approximately US$15 billion.
This figure comprises purchases of liquefied petroleum gas (LPG) worth US$3.5 billion, crude oil worth US$4.5 billion, and refined gasoline worth US$7 billion.
Anggia reaffirmed that the Energy Minister's commitment to reducing dependence on imports of certain fuels, including halting diesel imports, remains on the government's agenda.
The agreement document also does not stipulate any obligation to import diesel, meaning the government's policy to curb diesel imports continues in line with the national policy direction.
According to Anggia, the agreement is commercial in nature within the framework of international trade and does not automatically alter national policies regarding the energy mix, subsidies, or the long-term energy sector strategy.
"These are two different matters — the trade agreement and the energy independence policy," he said.
Beyond the oil and gas sector, the agreement also encompasses critical minerals cooperation aimed at strengthening investment and supply chain integration between the two countries, particularly in developing processing and refining capacity, without stipulating obligations for raw material exports or specific transaction values.
"That is more oriented towards investment cooperation. The details will be discussed further," he said.
Regarding new and renewable energy commodities, including bioethanol, the ESDM Ministry confirmed that no final decision has been made on trade schemes or sales obligations to the US, as all discussions remain at the negotiation stage.
"Everything is still in process and at the negotiation stage. We shall await the results once the delegation returns," Anggia said.
He also noted that to date there have been no further discussions regarding Freeport Indonesia or the promotion of new oil refinery projects within the trade negotiation proceedings.
The government has assured that all final outcomes and follow-up actions from the bilateral trade agreement will be communicated to the public once the negotiation process and cross-ministerial coordination are completed.