Indonesia will increase US crude oil imports to replace disrupted Middle East supplies, as regional conflict closes the Strait of Hormuz.
JAKARTA: Indonesia will import more crude oil from the United States to replace supplies from the war-torn Middle East, the archipelago’s energy minister said.
Minister of Energy and Mineral Resources Bahlil Lahadalia (pic) stated that 20 to 25% of Indonesia’s total crude oil imports come from the Middle East and pass through the Strait of Hormuz.
Attacks in the region have disrupted crude flows, with the crucial Strait of Hormuz effectively closed off.
“For the crude oil we currently take from the Middle East, we are diverting part of it to purchases from the United States, so that we have certainty regarding the availability of our crude oil,” Bahlil told reporters.
He added that 30% of Indonesia’s liquefied petroleum gas imports also came from the Middle East, and the government would seek alternative suppliers.
Indonesia imports the bulk of the oil it uses, with most of it coming from Nigeria.
Bahlil said Indonesia had enough crude oil supply for three weeks but could not import more due to inadequate storage facilities.
The move aligns with a pledge to purchase USD 15 billion of US energy under a newly-signed trade agreement.
President Prabowo Subianto has set a target for Indonesia to achieve energy self-sufficiency within the next five to seven years.
