Indonesian Coordinating Minister for the Economy Airlangga Hartarto stated that imports of oil and gas from the United States will be subject to the bidding process.
“There will definitely be a bidding process for the American vendors for the direct import,” Airlangga said on Thursday.
The oil and gas imports fall under a reciprocal tariff arrangement and will be carried out by state-owned PT Pertamina. Under Indonesia’s existing regulations, supplying energy to Pertamina must go through a competitive bidding process.
Airlangga previously stated that Indonesia would permit U.S. firms to sell energy products directly to Pertamina without undergoing the usual tender process as part of efforts to finalize a tariff deal with Washington.
Airlangga noted that a memorandum of understanding (MoU) regarding oil and gas imports has been drafted and will serve as a derivative of the reciprocal tariff agreement. The government aims to conclude the tariff deal with the United States by the end of the year.
He added that oil and gas imports from the U.S. can only proceed once the agreement is signed and emphasized that the scheme is open to private-sector participation. Under the deal, Indonesia has pledged to purchase $15 billion worth of U.S. energy products, while in return, its exports to the U.S. will benefit from a reduced tariff rate of 19%.
Earlier, PT Pertamina indicated that it has not yet been able to import crude oil from the U.S., as it is still waiting for official government regulations. “Still waiting for regulations. Well, we have to be prepared,” said Pertamina CEO Simon Aloysius Mantiri following a meeting with the House of Commission on Wednesday.
Simon added that the company cannot yet specify when the import will take place. While awaiting the regulations, Pertamina is focusing on preparing technical aspects, such as ensuring the refinery is ready to handle the incoming oil.
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