Indonesia plans to slash its fuel imports from Singapore and source more refined products from the United States as the country looks to negotiate lower tariffs with the U.S.
Indonesia was slapped with one of the highest tariffs – 32% – in the “liberation day” tariffs announced by U.S. President Donald Trump in early April. These tariffs have been suspended for 90 days, during which the Trump Administration expects most countries to come pleading their cases and promising to boost their imports of U.S. goods to avoid high tariffs.
In Indonesia’s case, more fuel would be sourced from the United States and the Middle East, instead of from Singapore, Indonesia Energy Minister Bahlil Lahadalia said on Friday.
“It is not only a matter of price but also geopolitical issues, we need to have a balance with other countries,” Lahadalia was quoted as saying by Bloomberg.
Indonesia could replace about 60% of all its fuel imports from Singapore to the U.S. in the early stages, while purchases from Singapore could be cut to zero “some day,” the minister said.
Last month, Lahadalia said that Indonesia, which is Southeast Asia’s biggest economy, would offer to buy an additional $10 billion worth of American oil and liquefied petroleum gas (LPG).
With the offer of $10 billion more U.S. energy imports, Indonesia plans to buy total U.S. goods worth between $18 billion and $19 billion to eliminate its trade surplus with America.
Indonesia is just one of the countries looking to buy their way out of steep tariffs with deals to purchase American energy products.
Most Asian countries are racing to pledge increased imports of U.S. energy to avoid the high tariffs slapped on them in early April. Delegations from many Asian countries are heading to Washington D.C. these days to discuss the U.S. tariffs, which are the highest for economies in Asia and Southeast Asia.
By Tsvetana Paraskova for Oilprice.com
More Top Reads From Oilprice.com
- Big Oil Isn’t Backing Down at $60 Oil
- US Crude Oil Output to Peak Sooner Than Expected
- The Market Is Well Supplied – So Why Is Saudi Arabia Raising Oil Prices?
