Indonesia to divert LPG imports from Saudi Aramco amid Middle East tensions
Wednesday, March 4 2026 - 02:19 PM WIB
By Pandu Setiabudi
Energy and Mineral Resources Minister Bahlil Lahadalia said Indonesia will divert around 30% of its liquefied petroleum gas (LPG) imports currently sourced from Saudi Aramco to alternative suppliers, citing rising geopolitical risks in the Middle East.
Speaking at a press conference on Tuesday (March 3), Bahlil said the move was aimed at reducing potential supply disruptions.
“Regarding LPG, the alternative is that we will divert LPG imports away from Saudi Aramco so that we do not take unnecessary risks,” Bahlil said.
Indonesia remains highly dependent on LPG imports to meet domestic demand, particularly for household consumption under the subsidized 3-kg LPG program. Domestic LPG production covers only a limited portion of national needs, making Indonesia structurally reliant on overseas suppliers. According to Bahlil, Indonesia currently imports around 7.8 million tonnes of LPG per year. Of this volume, about 70% is sourced from the United States, while the remaining 30% comes from Saudi Aramco.
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The decision to divert imports from Saudi Aramco is driven by the impact of escalating tensions involving Iran, the United States, and Israel in the Middle East. These tensions have led to the closure of the Strait of Hormuz, disrupting the shipment of commodities from the region. Bahlil stated that the diverted LPG imports will be sourced from countries whose shipping routes do not rely on the Strait of Hormuz. However, he did not explicitly name which countries would supply the LPG.
“We will purchase from countries that have no connection to the Strait of Hormuz,” Bahlil said.
Bahlil also noted that Indonesia’s national LPG stockpiles currently cover more than 21 days of consumption, which is above the minimum level set by the government. He added that, for now, the government has no plans to increase prices for subsidized LPG or subsidized fuel.
Editing by Reiner Simanjuntak