Government prepares long-term LPG contracts to secure supply

Jakarta — The Indonesian government is preparing long-term liquefied petroleum gas (LPG) import contracts with several countries to maintain the stability of national energy supply amid global geopolitical dynamics.

During a plenary cabinet session at Merdeka Palace in Jakarta on Friday, Energy and Mineral Resources Minister Bahlil Lahadalia stated that this measure is being taken as a government strategy to anticipate and ensure LPG supply remains secure despite potential changes in import sources from the Middle East.

Indonesia currently sources 70–75 per cent of its LPG imports from the United States and 20 per cent from the Middle East, with the remainder from various other countries, including Australia.

“Given the current situation in the Middle East, we are further diversifying to secure long-term contracts with America and other countries. This week, two cargoes from Australia will arrive. These are for LPG,” said Minister Bahlil Lahadalia.

The government has also scheduled several subsequent LPG cargo arrivals to ensure supply remains stable, particularly in the lead-up to and following Eid al-Fitr.

“The government is continually vigilant to ensure two cargoes arrive on 28 March, then one cargo on 4 April, and another cargo on 8 April,” Bahlil Lahadalia explained.

This effort is supported by the Refinery Development Master Plan (RDMP) operations at the Balikpapan Refinery, which helps reduce dependence on imports.

Meanwhile, regarding crude oil, approximately 20 per cent of Indonesia’s previous imports came from the Middle East. However, the government has also prepared alternative supply sources from other countries through long-term cooperation arrangements to safeguard national energy resilience.