The Indonesian government plans to increase its oil imports from the United States (US), as a strategic response to the newly imposed trade tariffs introduced by the US government.

Currently, Indonesia's fuel imports from the US are still relatively minor, accounting for only 4% of the nation’s total oil import volume. However, this planned increase in US imports warrants careful attention.

Indonesia’s former Governor for OPEC (2015–2016), Widhyawan Prawiraatmadja, warned that importing oil from the US would be significantly more expensive compared to importing from Middle Eastern countries.

He pointed out that the shipping distance from the US to Indonesia is considerably far, requiring around 20 days, in contrast to only about 10 days for shipments from the Middle East.

"Longer distance means longer delivery time. It takes twice as long," he told CNBC Indonesia in an interview, quoted on Friday (May 23, 2025).

He further explained that the extended delivery time also contributes to increased transportation costs.

"In addition to higher transportation expenses, we also have to account for larger inventory costs. What previously required only a 10-day supply now needs to be prepared for 20 days due to the longer transit time," he explained.

Meanwhile, Pertamina's President Director, Simon Aloysius Mantiri, highlighted that there are three critical factors Pertamina must consider before increasing oil imports from the US. These factors must be addressed carefully, as they directly impact national energy security.

"In assessing the plan to raise our oil import volume from the US, we must thoroughly consider a variety of technical challenges and risks, including logistics, distribution, infrastructure readiness, and economic feasibility to mitigate any threats to our national energy resilience," he stated during a hearing with Commission VI of the Indonesian House of Representatives (DPR RI) in Jakarta, quoted Friday (May 23, 2025).

Simon mentioned that the delivery time for oil shipments from the US to Indonesia could take up to 40 days, significantly longer than shipments from the Middle East.

"The primary risk lies in the longer shipping time from the US, which is around 40 days compared to the shorter durations from the Middle East or other Asian countries," he explained.

He also pointed to weather-related risks that could affect the national fuel supply.

"For this reason, Pertamina is currently conducting a comprehensive study that covers technical, commercial, and operational risks to ensure the feasibility of increasing imports from the US," he added.

Therefore, Pertamina emphasized the need for policy support from the government in the form of legal frameworks that will enable the execution of energy supply cooperation.

"A government-to-government (G2G) agreement between Indonesia and the United States will provide political and regulatory certainty, which can then be translated into technical and operational business-to-business partnerships," he concluded.