Indonesia's government and the United States have agreed on several energy sector deals following the meeting between President Prabowo Subianto and President Donald Trump. The agreements include energy imports worth 15 billion USD and Freeport permit extensions. These steps aim to balance trade and enhance national energy security.
Energy and Mineral Resources Minister Bahlil Lahadalia outlined the outcomes of Indonesia-US energy sector negotiations. The agreements include purchases of energy worth about 15 billion USD for finished fuels, LPG, and crude oil. According to Bahlil, this policy does not increase overall national import volumes but shifts some supply from Southeast Asia, the Middle East, and Africa to the US. "In that agreement, it is clearly stated that to balance our trade, the ESDM sector will spend approximately 15 billion USD," Bahlil said during a press conference in Washington DC on February 20, 2026.
Pertamina CEO Simon Aloysius Mantiri emphasized that energy imports from the US will proceed through open tender and bidding mechanisms, without direct appointments. This process aims to diversify supply sources for competitive prices and energy security amid declining domestic production. The US LPG import share is projected to rise from 57 percent to 70 percent, while crude oil imports from the US will increase without reducing commitments to other partners.
Beyond imports, the deals cover US investments in critical minerals such as nickel, rare earth metals, copper, and gold, including domestic refining facilities and partnerships with state-owned enterprises. For Freeport-McMoRan, the government targets an additional 12 percent share divestment without acquisition costs, raising Indonesia's ownership to 63 percent by 2041. Part of the additional shares will be allocated to producing regions in Papua. This permit extension supports new reserve exploration ahead of peak production in 2035, with current output at 3.2 million tons of copper concentrate annually, yielding around 900,000 tons of copper and 50-60 tons of gold.
In the renewable energy sector, the government is preparing mandatory ethanol blending with gasoline up to 5-10 percent by 2028, with temporary import options from the US. Discussions with ExxonMobil continue for operational extensions to 2055 with an additional 10 billion USD investment. All policies will be finalized within 90 days, supported by government regulations to ensure compliance.
