Foreign Media: "A Bargaining Chip for Tariff Negotiations with the US"
Indonesia, ahead of mutual tariff negotiations with the United States, has decided that up to 60% of its imported fuel will come from the US instead of Singapore in the future.
According to foreign media including Bloomberg News on May 9, Minister of Energy and Mineral Resources of Indonesia, Bahlil Lahadalia, stated that as part of the tariff negotiations with the US, Indonesia plans to shift some of its fuel imports from Singapore to the United States.
Speaking to reporters, Minister Lahadalia said, "It is almost certain that we will import other fuels from another country (the US) instead of that country (Singapore)," adding that the transition could take place within the next six months. He also mentioned that, in the initial phase, Indonesia could import 60% of its total fuel imports from the US instead of Singapore.
Minister Lahadalia explained that the decision was not only due to pricing issues but also because of geopolitical considerations, emphasizing the need to balance relations with other countries. According to foreign media, he predicted that the volume of imports from Singapore would eventually decrease to zero.
Foreign media also pointed out that Indonesia's plan to expand imports of US fuel is one of the "cards" it will offer in the upcoming mutual tariff negotiations with the United States. The Indonesian government intends to increase imports of US energy products?including petroleum products, crude oil, and liquefied petroleum gas (LPG)?by approximately $10 billion (about 14.02 trillion won).
Additionally, Minister Lahadalia said that Indonesia wants to import ten times more US crude oil than it currently does. At present, Indonesia imports about 4% of its total crude oil from the US. The state-owned oil and gas company Pertamina is prepared to implement the government's plan to expand imports of US fuel and may need to increase its fuel storage capacity.
Previously, in early April, the United States announced a 32% mutual tariff on Indonesia but postponed its implementation for 90 days.
Last year, Indonesia recorded a trade surplus of $14.4 billion (about 20.6 trillion won) with the United States.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
