Indonesia secures $15B LPG import deal with U.S. amid stricter distribution rules

Indonesia is strengthening its Liquefied Petroleum Gas (LPG) supply security through new import agreements and stricter distribution regulations. The Ministry of Energy and Mineral Resources (ESDM) has secured a $15 billion long-term LPG import contract with the United States. This move shifts Indonesia's supply reliance away from the Middle East toward the U.S. and Australia to mitigate risks posed by geopolitical tensions in the Persian Gulf.

In conjunction with securing supply, the Indonesian government is tightening oversight of LPG distribution. Under new regulations, the classification of LPG distribution business activities has been raised to a ‘Medium-High Risk’ category. This requires distributors to undergo rigorous verification through the Online Single Submission (OSS) system and the ESDM INLINE application. Officials emphasized that these stricter licensing requirements and technical document verifications are intended to ensure legal certainty and prevent the misuse of the vital commodity.