Jakarta – The Indonesian government is strategically capitalizing on the momentum to strengthen energy cooperation with the United States, with plans to increase crude oil and LPG imports from the US, valued at around USD 10 billion. This move aims to balance the trade deficit and respond to the new tariff policies imposed by the administration of President Donald Trump.
Deputy Minister for Investment and Downstreaming/Wakil Kepala Badan Koordinasi Penanaman Modal (BKPM), Todotua Pasaribu, mentioned that the oil and gas (O&G) sector is one of the strategic commodities that could serve as a gateway for Indonesian companies to invest in the United States.
“One of the strategic sectors is oil and gas. We see the business line, and actually, some of our investments abroad have already happened, one of which is in the O&G industry through Pertamina’s subsidiaries. But let’s see how strategic it is,” said Todotua.
Meanwhile, the Acting Director-General of Oil and Gas (Dirjen Migas), Tri Winarno, stated that upstream O&G remains a key priority in the government’s investment strategy. However, he emphasized that the final decisions on investments are still under intensive negotiations and being adjusted to the financial capacity of PT Pertamina (Persero).
“Investments in the upstream sector remain the focus. However, everything is still in the process of discussions and adjusting to Pertamina’s financial capabilities,” he said.
On the other hand, Indonesia faces a significant challenge in achieving its target of producing 1 million barrels of oil per day (BOPD) and 12 billion standard cubic feet of gas per day (BSCFD) by 2030. SKK Migas estimates the investment needed to reach this target at around USD 20 billion per year, including drilling more than 1,000 wells annually after 2025.
The rise in investments presents a golden opportunity for Indonesia to strengthen its upstream O&G sector and accelerate the energy transition. The government needs to ensure a conducive investment climate through regulatory improvements, transparency, and attractive fiscal incentives.
Strategic collaboration between Indonesia and the US in the energy sector will not only strengthen national energy security but also drive sustainable and environmentally friendly economic growth.
