Indonesia to increase oil imports from US to deal with reciprocal tariffs
The Indonesian government is planning to increase its import volume of petroleum from the US. The US government announced that it would impose tariffs of 32% on all imports from Indonesia. The US is Indonesia's second largest export destination after China. The Indonesian government targets to reduce the tariffs by increasing imports including petroleum, wheat and soybeans from the US.
At present, Singapore accounts for more than half of Indonesia's total petroleum products imports. Indonesia targets to decrease imports from Singapore and increase imports from other countries particularly from the US going forward. Indonesia is currently importing gasoline, gasoil and LPG. It is expected that Indonesia will increase imports of LPG in particular from the US.
Imports of crude oil from the US is also anticipated to go up. Some observers believe that the volume of crude oil imported from the US could swell to 10 times the current level. According to a market source, however, there are currently some technical problems to process US crude oil at Indonesian refineries that are using crude oil with different specs.