Indonesia to Import Crude Oil from the US: Here’s Why

Indonesia will import more crude oil from the United States to replace Middle East supplies. The US and Israel’s attacks on Iran and Iran’s retaliation have disrupted crude flows, with the Hormuz Strait — through which about one-fifth of global oil passes — being closed. Indonesia’s Energy and Mineral Resources Minister Bahlil Lahadalia said that 20-25% of total crude imports originate from the Middle East and pass through Hormuz. “For the crude oil we currently take from the Middle East, we will shift part of it to purchases from the United States, so we have certainty about crude availability,” Bahlil told reporters in Jakarta on Tuesday (3/3). He said 30% of Indonesia’s liquefied petroleum gas imports also come from the Middle East, and the government will seek alternative suppliers. Indonesia has enough crude stock for three weeks and cannot import more because the country does not have adequate storage facilities. Indonesia has pledged to buy US energy worth USD 15 billion under the new trade agreement with the US.