Indonesia reviews agreement on energy imports from the United States

Jakarta (ANTARA) - The Ministry of Energy and Mineral Resources (ESDM) announced it will review agreements on imports of energy commodities, including crude oil, fuel oil (BBM), and LPG, from the United States over a 90-day period following the decision of the US Supreme Court.

“With the decision by the American Supreme Court, we have the opportunity for a 90-day review,” said Deputy Minister of ESDM Yuliot when met at the Ministry’s office in Jakarta on Friday.

Yuliot did not rule out the possibility of changes or further discussion regarding the agreement during the 90-day period. The review and reassessment during this timeframe also forms part of the implementation process.

“Over the next 90 days, we will conduct discussions in relation to implementation,” said Yuliot.

Nevertheless, Yuliot explained that what was cancelled by the US Supreme Court was the reciprocal tariff programme. This cancellation does not apply to trade agreements between countries that were finalised through discussion processes after the US implemented reciprocal tariffs.

“The energy import agreement from the US under the Agreement on Reciprocal Trade (ART) is valued at $15 billion. Meanwhile, what the US Supreme Court reviewed relates to tariffs. So there is a difference,” said Yuliot.

On Thursday (19 February), the Indonesian Government and the US officially signed the reciprocal tariff agreement (ART). Under the agreement, 1,819 tariff positions of Indonesian products received facilities for zero per cent import duty exemption.

Products covered include palm oil, coffee, cocoa, spices, rubber, electronic components including semiconductors, and aircraft components. Additionally, both countries also agreed to eliminate zero per cent import tariffs for Indonesian textiles and garments under certain quota schemes.

However, one day after the agreement, on Friday (20 February), the US Supreme Court ruled that President Trump did not have the authority to implement global tariffs under the International Emergency Economic Powers Act (IEEPA). This decision led the US to begin implementing a temporary 10 per cent global tariff, with the White House planning to increase it to 15 per cent.

Indonesia’s Coordinating Ministry for Economic Affairs assured that there would be further discussions with the US following the Supreme Court’s decision cancelling Trump’s reciprocal tariff policy.