Pertamina will continue competitive bidding for U.S. energy imports despite trade deal, increasing LPG purchases and strengthening strategic energy partnerships.
Indonesia’s state-owned oil and gas company, Pertamina, has confirmed that it will continue to procure energy supplies from the United States through a competitive bidding mechanism, even after the recent trade agreement between the two nations. The company emphasized that the newly concluded deal does not alter its established procurement practices, which prioritize transparency and competition.
The announcement comes shortly after Indonesia and the United States finalized a bilateral trade agreement that significantly reduced U.S. import tariffs on Indonesian goods from 32% to 19%. As part of this broader economic arrangement, Indonesia has committed to importing approximately $38.4 billion worth of goods and services from the United States. A substantial portion of this—around $15 billion—will be allocated to energy-related imports, including crude oil, liquefied petroleum gas (LPG), and refined fuel products.
Speaking to reporters, Pertamina’s CEO Simon Aloysious Mantiri clarified that all planned imports of U.S. energy commodities will follow standard tendering procedures. He stressed that there would be no direct awarding of contracts, reinforcing the company’s commitment to fair and open competition. According to Mantiri, this approach ensures both cost efficiency and compliance with governance standards.
One notable shift expected from the agreement is a significant increase in LPG imports from the United States. Currently, U.S. supplies account for about 57% of Pertamina’s total LPG imports, but this share is projected to rise to approximately 70% in the coming years. This adjustment reflects Indonesia’s broader strategy to diversify its energy sourcing and strengthen trade ties with the U.S.
In line with this strategy, Pertamina had already taken steps to deepen cooperation with major global energy firms. Last year, the company signed a memorandum of understanding with leading U.S.-based corporations, including Exxon Mobil, Chevron, and KDT Global Resources. These agreements are expected to facilitate long-term supply arrangements and support Indonesia’s evolving energy needs.
Indonesia has also indicated its intention to gradually reduce dependence on traditional energy suppliers such as Singapore, the Middle East, and Africa. By increasing imports from the United States, the country aims to enhance energy security while aligning its trade policy with strategic economic partnerships.
Additionally, the agreement includes provisions related to upstream energy investments. The Indonesian government has confirmed that Exxon Mobil’s contract to operate the Cepu oil block in East Java will be extended until 2055. This extension is anticipated to attract approximately $10 billion in additional investment, further boosting the country’s oil production capacity.
However, officials have noted that certain technical and financial aspects of the contract extension—such as cost recovery mechanisms and profit-sharing arrangements—still need to be finalized. Energy Minister Bahlil Lahadalia stated that these details are currently under discussion and are expected to be resolved in the near future.
Overall, while the trade deal marks a significant step in strengthening U.S.-Indonesia economic ties, Pertamina’s adherence to its established bidding framework highlights its continued focus on operational integrity and market-driven procurement.
