Indonesia's LPG Imports from the United States to Surge to 70% as Supply Diversification Strategy

Jakarta — Indonesia’s Minister of Energy and Mineral Resources Bahlil Lahadalia has revealed that the country will increase liquefied petroleum gas (LPG) imports from the United States to 70% of total supplies. This shift forms part of the government’s broader strategy to diversify energy supply sources amid global uncertainties.

Previously, the majority of Indonesia’s LPG imports originated from the Middle East. However, the government is now redirecting its supply sources to the United States to strengthen national energy resilience and reduce dependence on crude oil and petroleum product imports from a single region.

“We are now redirecting our LPG imports so that 70% comes from America. There is no need to worry. Under President Prabowo’s direction, we in government do not rest. We continuously seek access and find solutions,” Bahlil stated during the Bukan Abuleke podcast.

Currently, approximately 52% of Indonesia’s LPG imports originate from the United States, with the remaining 48% from the Middle East. However, both regions are currently experiencing serious regional conflicts.

The ReforMiner Institute’s Executive Director Komaidi Notonegoro previously cautioned the government to anticipate risks to energy distribution, particularly for LPG, which affects essential household needs. Domestic consumption reaches approximately 9 million metric tonnes annually, whilst domestic production amounts to only about 1.8 million metric tonnes. This gap of 7.2 million metric tonnes must be met through imports from just two primary locations, creating a significant vulnerability in Indonesia’s energy security.