Perpres on Reciprocal Energy Trade with AS Being Prepared

The Government of Indonesia (“Government”) is currently finalizing the legal framework related to a reciprocal energy trade scheme between Indonesia and the United States (“AS”). The establishment of a legal umbrella in the form of a Regulation of the President (“Perpres”) is still awaiting the completion of the ratification process of the trade agreement.

“For the reciprocal arrangement, it still requires a ratification process first,” said Laode Sulaeman, Director General of Oil and Gas at the Ministry of Energy and Mineral Resources.

Laode explained that coordination regarding the legal framework is being carried out under the Coordinating Ministry for Economic Affairs. There are several key stages that must be fulfilled before the regulation can officially take effect. Although a new regulatory framework is currently being prepared, Laode emphasized that energy trade activities with AS are continuing.

“With the United States, even without this reciprocal arrangement, we are already importing Liquefied Petroleum Gas (“LPG”),” he said.