Latest news with #BahlilLahadalia
Arab News
a day ago
- Business
- Arab News
Indonesia to cut Middle East oil imports to meet Trump's tariff deal
JAKARTA: Indonesia will reduce oil and gas imports from Middle Eastern and Asian countries, Energy and Mineral Resources Minister Bahlil Lahadalia said, as Jakarta moves to implement its $15 billion energy deal with the US under the latest tariff agreement. Indonesia is among three Southeast Asian countries that have struck deals with Washington so far, following negotiations with US President Donald Trump to lower tariff rates. Jakarta has agreed to increase its imports from the US by more than $22 billion — including energy products — under the framework trade deal, while US tariffs on Indonesian imports would be set at 19 percent. 'We have agreed to buy $15 billion worth of gasoline, crude oil and LPG (liquefied petroleum gas), which we will do in steps by considering its economic viability. The prices must be competitive, and now we're designing a framework for it,' Lahadalia told reporters in Jakarta on Monday. 'We will reduce (imports) from other countries (in) the Middle East and Asia.' Southeast Asia's biggest economy's oil imports were valued at about $36 billion last year. While the US is among Indonesia's top oil suppliers, Washington still ranks behind Singapore, Malaysia and Saudi Arabia. The US deal, which is expected to be finalized in the coming weeks, allows Indonesia to avoid the higher tariff rate of 32 percent threatened earlier by the Trump administration. 'We know that 32 percent (tariff rate) means no trade, which basically means a trade embargo, and that means around 1 million workers in labor-intensive sectors can be impacted,' Coordinating Minister for Economic Affairs Airlangga Hartarto said in a statement. 'What the government is doing through this cooperation with the US is to keep the internal and external balance so that we can maintain our trade balance, keep our economic momentum and ensure job creation.' The US is Indonesia's second-largest market after China, with exports valued at over $26 billion in 2024, according to Indonesia's statistics agency. Indonesia has consistently posted trade surpluses with the US in the past decade, including $16.8 billion last year. Under the tariff agreement, Jakarta agreed to drop its tariff on nearly all American imports to zero and scrap all non-tariff barriers facing American firms, while also committing to purchase $4.5 billion worth of agricultural products from the US, including soybeans, wheat and cotton, as well as Boeing aircraft valued at $3.2 billion.
Reuters
22-07-2025
- Business
- Reuters
Indonesia mining ministry proposes 18 development projects for Danantara funding
JAKARTA, July 22 (Reuters) - Indonesia's mining ministry has drawn up a list of 18 projects worth $38.6 billion to develop the country's natural resources and handed them over to sovereign wealth fund Danantara Indonesia on Tuesday for potential investment. Launched earlier this year, Danantara is Indonesian President Prabowo Subianto's main vehicle to achieve his 8% economic growth target by 2029 by managing all shares of state-owned enterprises and reinvesting the dividends in commercial projects. The development and acceleration of Indonesia's domestic processing industries is among Prabowo's top economic agenda priorities. Energy and Mineral Resources Minister Bahlil Lahadalia said the fund had the capacity to finance and manage the projects. The priority projects include eight projects for the processing of minerals and coal, two which support energy security, while the rest concern energy transition and the processing of agriculture and fishery products, Bahlil said at the handover ceremony. The government has already carried out initial studies on the proposed projects, and transferred to Danantara for further assessment and implementation. The list of projects include oil refineries and storage facilities, a plant to produce solar panels, biofuels for jets, as well as iron and alumina smelters, ministry officials said. Danantara, which recently secured a $10 billion credit line, will invest in the projects if they meet the fund's investment criteria, its CEO Rosan Roeslani told reporters. "The financing can come from Danantara, state-owned can also even invite domestic or foreign private companies to make sure we can employ the best technology," Rosan said.
Business Times
15-07-2025
- Business
- Business Times
Indonesia looking at levy on coal exports to boost state coffers
[JAKARTA] Indonesia, the world's biggest coal exporter, may impose an export levy on the fossil fuel in a bid to boost state revenues, according to local media reports that cited a government minister. The tariff would only be collected from miners when coal prices are high, with authorities still determining what level that would be, Energy and Mineral Resources Minister Bahlil Lahadalia told reporters after a parliamentary hearing in Jakarta on Monday (Jul 14). He also said a similar levy on gold exports was being considered. 'If prices are good, then they should share some of those earnings with the state,' he was quoted as saying by multiple media outlets. 'But if prices aren't economic, then we shouldn't burden businesses either.' Prabowo Subianto's administration has been rolling out an array of revenue-boosting measures to fund the president's big-ticket spending plans, which include free meals for all school children and construction of public housing. The royalty rates paid by nickel, tin and other miners were also raised earlier this year to bolster state coffers. An export levy would add to the royalties already imposed on coal production, which are a major source of non-tax state revenue for Indonesia. The sprawling archipelago produced 834 million tonnes of the fuel last year, roughly half of which was exported, according to government data. The plan creates policy uncertainty for Indonesian miners, and could add to refinancing risks for high-yield companies with limited liquidity and diversification, Mary Ellen Olson, a Bloomberg Intelligence analyst, said in a note. Indika Energy, Medco Energi Internasional, Mining Industry Indonesia and Freeport Indonesia are potentially most at risk, she said. BLOOMBERG
Bloomberg
15-07-2025
- Business
- Bloomberg
Indonesia Looking at Levy on Coal Exports to Boost State Coffers
Indonesia, the world's biggest coal exporter, may impose an export levy on the fossil fuel in a bid to boost state revenues, according to local media reports that cited a government minister. The tariff would only be collected from miners when coal prices are high, with authorities still determining what level that would be, Energy and Mineral Resources Minister Bahlil Lahadalia told reporters after a parliamentary hearing in Jakarta on Monday. He also said a similar levy on gold exports was being considered.
Bloomberg
14-07-2025
- Business
- Bloomberg
Indonesia Says US Oil Deal Hinges on Tariff Talks, Reports Say
Indonesia's plan to buy billions of dollars' worth of US oil-related goods depends on the outcome of tariff negotiations, according to a top official cited by local news outlets. 'We have allocated $10 billion to $15 billion to buy from the US if the tariffs are lowered, but if not, then there won't be a deal,' Energy and Mineral Resources Minister Bahlil Lahadalia said in Jakarta on Monday, media outlets including CNN Indonesia and Bloomberg Technoz reported.
