Pertamina Chief: US Share of LPG Imports Could Rise to 70 Per Cent
Jakarta (ANTARA) — President Director of PT Pertamina (Persero) Simon Aloysius Mantiri has said the Indonesia-United States trade agreement will bolster national energy security, particularly through increased imports of Liquefied Petroleum Gas (LPG) from the US.
Simon stated that Pertamina has been importing large volumes of LPG from the US, with an existing share of approximately 57 per cent. "With this trade agreement, we will certainly be able to increase that, potentially up to 70 per cent," he said during a virtual press conference from Washington D.C. on Friday.
The Central Statistics Agency (BPS) recorded Indonesia's LPG import value in 2024 at approximately US$3.8 billion, equivalent to Rp64.1 trillion (at an exchange rate of Rp16,888 per US dollar).
Of that total, imports from the US dominated at approximately US$2.03 billion or Rp34.3 trillion, accounting for around 53 per cent of total imports or 3.94 million tonnes.
The second-largest source of LPG imports for Indonesia was Qatar, valued at US$0.4 billion (Rp6.7 trillion) or 11 per cent, followed by the United Arab Emirates (UAE) at US$0.39 billion (Rp6.6 trillion) or 10 per cent.
Beyond LPG, Simon also stated that Pertamina would push for increased crude oil imports from the US, whilst exploration of refined oil products would be conducted with American partners.
He further explained that the US$15 billion (Rp253.3 trillion) energy import commitment from the US forms part of an energy source diversification strategy to ensure supply at competitive prices.
"Beyond sources from Southeast Asia, the Middle East, and Africa, we also see significant opportunities from the United States," he said.
Simon emphasised that the entire import process would continue to be conducted through open tender and bidding mechanisms, rather than direct appointment, to ensure transparency.
He added that the trade agreement represents a win-win solution for both nations, whilst respecting each country's regulations.
"In the next 90 days we await finalisation, with government support in the form of decisions and permits. Everything is carried out in accordance with applicable procedures and regulations," he said.
The Indonesian and US governments officially signed the key points of a reciprocal tariff agreement on Thursday (19 February), which includes a commitment to purchase energy commodities from the US worth a total of US$15 billion.
This value comprises LPG purchases of US$3.5 billion (Rp59.1 trillion), crude oil of US$4.5 billion (Rp76.0 trillion), and refinery-produced petrol of US$7 billion (Rp118.2 trillion).
Simon stated that Pertamina has been importing large volumes of LPG from the US, with an existing share of approximately 57 per cent. "With this trade agreement, we will certainly be able to increase that, potentially up to 70 per cent," he said during a virtual press conference from Washington D.C. on Friday.
The Central Statistics Agency (BPS) recorded Indonesia's LPG import value in 2024 at approximately US$3.8 billion, equivalent to Rp64.1 trillion (at an exchange rate of Rp16,888 per US dollar).
Of that total, imports from the US dominated at approximately US$2.03 billion or Rp34.3 trillion, accounting for around 53 per cent of total imports or 3.94 million tonnes.
The second-largest source of LPG imports for Indonesia was Qatar, valued at US$0.4 billion (Rp6.7 trillion) or 11 per cent, followed by the United Arab Emirates (UAE) at US$0.39 billion (Rp6.6 trillion) or 10 per cent.
Beyond LPG, Simon also stated that Pertamina would push for increased crude oil imports from the US, whilst exploration of refined oil products would be conducted with American partners.
He further explained that the US$15 billion (Rp253.3 trillion) energy import commitment from the US forms part of an energy source diversification strategy to ensure supply at competitive prices.
"Beyond sources from Southeast Asia, the Middle East, and Africa, we also see significant opportunities from the United States," he said.
Simon emphasised that the entire import process would continue to be conducted through open tender and bidding mechanisms, rather than direct appointment, to ensure transparency.
He added that the trade agreement represents a win-win solution for both nations, whilst respecting each country's regulations.
"In the next 90 days we await finalisation, with government support in the form of decisions and permits. Everything is carried out in accordance with applicable procedures and regulations," he said.
The Indonesian and US governments officially signed the key points of a reciprocal tariff agreement on Thursday (19 February), which includes a commitment to purchase energy commodities from the US worth a total of US$15 billion.
This value comprises LPG purchases of US$3.5 billion (Rp59.1 trillion), crude oil of US$4.5 billion (Rp76.0 trillion), and refinery-produced petrol of US$7 billion (Rp118.2 trillion).