Matras News – The Indonesian government is preparing strategic measures to respond to the United States’ high tariff policy, which could potentially trigger global trade tensions. Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia emphasized that the government’s current priority is to reduce the trade balance deficit between Indonesia and the U.S. by optimizing the energy sector and reorganizing imports of essential commodities.
“Indonesia needs to import several commodities such as LPG, fuel, and crude oil, with a total value of around US$10 billion. We currently face a trade deficit of about US$14.6 billion, while the U.S. claims a trade deficit against Indonesia of US$17.9 billion,” said Bahlil after his inauguration at the ESDM Ministry building on Monday (April 28, 2025).
Responding to speculation about plans to increase LNG imports from the U.S., Bahlil denied the rumors. He asserted that Indonesia’s current energy needs are still sufficiently met and that there has been no directive from President Prabowo Subianto to import LNG.
“I’m simply explaining what we’re doing—don’t twist it. So far, there has been no discussion about importing LNG from the U.S.,” he firmly stated.
In addition, Bahlil revealed that Indonesia is exploring the purchase of capital goods from the U.S. worth between US$8–10 billion. These goods would be used to build energy processing facilities, including oil refineries, as part of the country’s broader energy downstreaming agenda.
Echoing these efforts, Finance Minister Sri Mulyani Indrawati underscored the importance of balancing the trade account with the U.S. According to her, the government will increase imports of agricultural products such as wheat, soybeans, and corn, as well as energy and manufactured goods—including items from the aviation sector like Boeing aircraft.
“These commodities can be leveraged to reduce, or even eliminate, the surplus that has long been a concern for the U.S.,” she noted.
From an institutional perspective, Deputy Minister of Energy and Mineral Resources Yuliot Tanjung stressed that Indonesia is not opting for a confrontational approach in response to tariff pressure. The government has formed a special negotiation team to represent national interests in a strategic and constructive manner.
“The ESDM Ministry plays a critical role in narrowing the deficit, and the energy sector holds significant potential to enhance national competitiveness,” Yuliot explained.
In support of Indonesia’s energy transition process and to strengthen its position in global negotiations, the international law firm Dentons has expressed its commitment. As the world’s largest law firm, Dentons brings extensive experience in assisting countries dealing with tariff disputes and international legal challenges.
Andre Rahadian, Founding Partner of Dentons HPRP, stated Dentons’ readiness to act as a strategic partner in supporting Indonesia’s energy transition.
“We are ready to be a strategic partner to ensure the energy transition proceeds in a legally sound, sustainable, and investor-friendly manner,” he said.
Through inclusive diplomacy, cross-sectoral collaboration, and support from international partners, Indonesia is demonstrating a firm yet adaptive stance in navigating global challenges in the trade and energy sectors.
