As part of the tariff negotiations, Indonesia wants to reduce fuel imports from Singapore and increase them in the US.

Indonesia's energy minister announced on Friday that it plans to switch the source of some fuel imports to the United States in negotiations over high tariffs.

The United States has imposed 32% tariffs on Indonesian products, but, like many other countries, the implementation was paused for July in order to allow time for negotiations.

Minister Bahlil lahadalia stated that the shift of fuel imports from Singapore to other countries would be gradual. He said that Indonesia may shift up to 60% of its fuel imports away from Singapore in the beginning.

He told reporters that the switch could happen within the next six-months. Indonesia's proposal to Washington for a reduction in tariffs includes increasing fuel imports. The government wants to increase U.S. imports of energy by $10 billion. This includes fuel, crude oil, and liquefied petrol gas.

Bahlil said that Indonesia is seeking to import ten times more U.S. oil than it does now as part of negotiations. About 4% of Indonesia's crude imports come from the United States.

Pertamina, a state-owned energy company, has stated that it is ready to implement the plan. It may need to increase fuel storage capacity to accommodate U.S. fuels.

(source: Reuters)