Indonesia Eyes $15B US Energy Buys to Balance Trade with Trump

Energy and Mineral Resources Minister Bahlil Lahadalia outlined key outcomes from Indonesia-US negotiations in the energy sector, following agreements between President Prabowo Subianto and President Donald Trump. The details cover plans for energy imports, investments in critical minerals, and bolstering national energy security.

The government is preparing technical implementation steps to roll out after a 90-day finalization period. These moves aim to balance the trade ledger while deepening strategic ties between the two nations in energy and natural resources.

“The agreement clearly stipulates that to balance our trade position, the Energy Ministry will spend around $15 billion,” Bahlil said during a press conference in Washington DC, as quoted late Friday (February 20, 2026) Indonesia time.

This $15 billion energy spend includes purchases of finished fuels, LPG, and crude oil. Officials stress that the policy won’t increase overall national import volumes but will redirect some supplies from Southeast Asia, the Middle East, and Africa to the United States.

Beyond energy trade, the partnership emphasizes boosting investments in critical minerals. Indonesia is opening doors for US firms to invest in nickel, rare earth metals, copper, and gold, all while adhering to domestic regulations.

“We’ve agreed to facilitate US businesses in investing, respecting our country’s rules,” Bahlil stated.

Investment models include building domestic refining facilities and partnerships with state-owned enterprises or existing operators. The government insists this aligns with downstream processing goals and won’t reopen raw material exports.

Bahlil also updated on extending Freeport-McMoRan’s operations. The plan targets an additional 12% divestment without acquisition costs, raising Indonesia’s stake to 63% by 2041. Part of this extra ownership will go to producing regions in Papua.

In renewable energy, the government is mandating ethanol blending in gasoline. The target is 5-10% blending by 2028, with temporary imports to bridge any domestic shortfalls.

“We do have a mandate. Our 2028 mandate is projected at around 5 to 10%,” Bahlil said.

Talks with ExxonMobil continue on potentially extending operations to 2055, with an extra $10 billion in investments. Discussions include tweaking cost recovery schemes for better state revenues.

PT Pertamina President Director Simon Aloysius Mantiri added that US energy imports will follow standard business mechanisms via open tenders. Diversifying sources is key to securing competitive prices and energy resilience amid declining domestic output.

Bahlil affirmed all policies will launch post-finalization. The government aims for swift rollout to build trust and ensure mutually beneficial cooperation. These steps should fortify energy security and deliver economic gains for Indonesia.

Meanwhile, Bahlil Lahadalia said Indonesia will map out mining areas to offer US investors. This follows economic pacts between Presidents Prabowo and Trump.

The government is also inviting investments in strategic minerals like nickel, rare earths, copper, and gold. Schemes stick to national rules and focus on strengthening domestic processing industries.

“In terms of acquiring existing mining areas, we’ll offer them to interested companies and facilitate entry. I’ve already mapped prospective locations,” Bahlil explained.

He detailed two investment approaches: investors can go solo from exploration to production, or partner via joint ventures with operating firms, including state-owned ones.

Indonesianpost.com | Republika