Indonesia explores start of LNG imports from Q3 or Q4, 2025: SKK Migas head

The Indonesian government is exploring the possibility of starting LNG imports as early as the third quarter or the fourth quarter of 2025, a senior government official said April 9.

"We will see in Q3 and Q4 whether imports are needed or not. So, evaluations are carried out every three months," Djoko Siswanto, the head of Indonesia's upstream regulator SKK Migas, told reporters.

The comments came a day after Coordinating Minister for Economic Affairs Airlangga Hartarto said April 8 that the Indonesian government is preparing to import LNG and LPG from the US as part of its trade strategy in response to new tariff policies from US President Donald Trump.

"Therefore, based on the instruction of President Prabowo, we will increase imports of products from the US, and are also prepared to purchase LPG and LNG from the US," Hartarto said, adding that the move is a form of purchase reallocation and will not burden the state budget.

He emphasized that this move does not represent an increase in import volume, but rather a switch from other sources.

This policy emerged after Trump announced sweeping new tariffs on imports from major trading partners, outlining a 10% baseline tariff on all imported goods, which took effect on April 5. Indonesia faces a 32% reciprocal tariff, effective April 9.

Quarterly evaluations

Speaking to reporters April 9, Siswanto said the evaluation of LNG import needs will be carried out quarterly in line with developments in domestic supply conditions. He added that the government assures that domestic LNG needs are secured through the second quarter.

If Indonesia moves ahead with allowing imports of US LNG, it could help alleviate the country's domestic shortage of natural gas, with a shortfall of around 50 LNG cargoes for 2025.

"Up until now, we have not imported [LNG], right? If it is really needed, we will see; it is being evaluated. But for now, we are still trying to meet LNG needs from within the country," Siswanto said.

Indonesian sources separately told Platts, part of S&P Global Commodity Insights, on April 9 that companies are having discussions with the government and waiting for further instructions.

"We are expecting a decision next month," said one of the sources.

Another source said: "Not sure about LNG imports yet, nothing is firm. LPG should be easier, just adding some volume, while LNG is going to be challenging."

Siswanto said that, until now, Indonesia has been importing gasoline and LPG. "As for LNG, we do not import it. So, we are still importing gasoline and LPG, right? These two commodities we are maximizing from the US."

LPG and crude

Minister of Energy and Mineral Resources Bahlil Lahadalia told reporters separately April 9 that 54% of Indonesia's LPG supply comes from the US. Indonesia also imports 4% of its fuel consumption from the US.

"Now, this is what we are currently exercising to later be made into one of the commodities we can buy from America. As of today, what we have calculated is LPG and fuel. As for other commodities in the fuel sector, we have not calculated them yet because there is no need yet," said Lahadalia.

However, Lahadalia emphasized that the increasing volume of LPG imports from the US will not stop import supply from Singapore, Africa and Latin America but will only reduce the volume.

The government is still calculating the volume and economic feasibility of LPG prices to be purchased from the US because imports from the US may incur higher costs due to transportation costs compared with those from the Middle East.

"The price of LPG from America is the same as from the Middle East. So, I think there is always a way for us to calculate. In business, what is important is that the product received in our country is at a competitive price," Lahadalia said.

Data from Indonesia's Central Statistics Agency showed that crude oil imports in 2024 reached 16.86 million mt. Indonesia typically imports LPG with a volume of about 7 million mt/year.