2026-02-20 17:00:00
INDONESIA NEED U.S. ENERGY $15 BLN
S&P GLOBAL - February 20, 2026 - Indonesia has committed to purchase about $15 billion worth of US energy commodities under a new reciprocal trade agreement with Washington.
This energy buying pledge—part of an estimated $33 billion in US goods purchases pledged by Jakarta—includes $3.5 billion for LPG, $4.5 billion for crude oil, and $7 billion for refined gasoline, according to the agreement released by the Office of the US Trade Representative on Feb. 19 in Washington.
According to data from S&P Global Commodities at Sea, Indonesia's LPG imports were 241,900 barrels per day in 2025, including 166,100 b/d from the US. The total crude and condensate imports reached 380,500 b/d in 2025, with 15,100 b/d coming from the US.
Platts, part of S&P Global Energy, assessed AGS -- the value for barrels of WTI Midland loaded on a free-on-board basis -- at $67.51/b on Feb. 19.
While Indonesia is structurally dependent on gasoline imports, receiving 268,700 b/d of gasoline in 2025, Singapore and Malaysia remained its top suppliers. US-origin gasoline volumes to Indonesia were minimal.
A market participant based in Singapore said that a shift toward US supply could modify established sourcing patterns from the Middle East and regional hubs such as Singapore, but the final impact will depend on execution details, as well as contract duration and delivery schedules.
Beyond purchasing US-origin goods, Indonesia also agreed to permit and support US investment in exploration, refining, processing, and transportation of energy resources and critical minerals, with possible financing assistance from US institutions.
Jakarta also agreed not to restrict imports of US bioethanol and outlined plans to introduce E5 fuel blending by 2028 and E10 by 2030, with a possible pathway toward E20 depending on infrastructure readiness.
Both countries agreed to lower tariff barriers. Indonesia will remove tariffs on over 99% of US products exported to Indonesia across all sectors, while the US will maintain a 19% reciprocal tariff on imports from Indonesia. However, certain textile and apparel goods will receive a 0% reciprocal tariff rate under the agreement.
The US currently has its 15th-largest goods trade deficit with Indonesia, totaling $23.7 billion in 2025. Before this deal, Indonesia's simple average applied tariff was 8%, while the US average was 3.3%, according to the USTR factsheet.
"President Trump has delivered a forward-looking, expansive trade deal in one of the biggest markets in Southeast Asia, benefitting American workers, exporters, farmers, and digital innovators," said the White House.
Ahead of Indonesian President Prabowo Subianto's meeting with US President Donald Trump to finalize the trade agreement, Jakarta announced that Indonesian and US companies signed 11 deals worth $38.4 billion on Feb. 18 across mining, energy, agribusiness, textiles, furniture, and technology sectors.
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