Indonesia to Redirect Oil Imports to United States, But Shipping Times to Increase

Jakarta — Indonesia’s Energy and Mineral Resources Minister Bahlil Lahadalia announced that the government will redirect oil imports that currently originate from the Middle East to the United States. Currently, Middle Eastern oil accounts for approximately 25 per cent of Indonesia’s national oil imports.

Lahadalia stated that even in the event of a Strait of Hormuz closure, the government would shift this 25 per cent of oil imports to the US, despite the shipping distance requiring up to 40 days.

“Why America? Because they have greater volume of oil that we can work with. There will undoubtedly be many questions — 40 days to America compared to just 2 to 3 weeks from the Middle East. That’s correct. The distance is longer, it will take more time. However, we are making long-term arrangements from the outset so that we can manage the logistics distribution methods,” Lahadalia explained during a podcast hosted by the Energy and Mineral Resources Ministry.

This strategy is already being applied to liquefied petroleum gas imports. Indonesia has successfully shifted 70 per cent of its LPG imports from the Middle East to the United States, whereas previously the majority came from the Middle Eastern region.

“There is no need for concern,” Lahadalia said. “The government, with President Prabowo’s direction, does not rest. We are constantly searching for access, constantly seeking solutions. Alongside our fasting, we are working tirelessly, our bodies are worn down thinking about national fuel. This is not merely superficial thinking.”