Indonesia Plans Long-Term Russian Crude Oil Import Deal

13 hours ago 5

August 5, 2026 | 03:39 pm

Energy and Mineral Resources Minister Bahlil Lahadalia speaks to reporters after a working meeting with House of Representatives Commission XII in Jakarta, June 15, 2026. Tempo/Nandito Putra.

TEMPO.CO, Jakarta – Indonesia is preparing a long-term contract to import crude oil from Russia as part of its strategy to strengthen national energy security, Energy and Mineral Resources Minister Bahlil Lahadalia said on Wednesday, August 5.

"The first shipment has already arrived. The second shipment is underway. We will later establish a long-term contract," Bahlil told reporters at the Energy Ministry in Jakarta.

The minister stressed that the imports are being handled by the state through the government's Oil and Gas Testing Center (Lemigas), not by state-owned energy company Pertamina.

According to Bahlil, once the government imports Russian crude, its distribution becomes a matter of national sovereignty and should not be subject to interference from other countries.

"No foreign country should interfere with our decisions. Indonesia adheres to an independent and active foreign policy," he said.

Government Defends Russian Oil Imports

Bahlil said Indonesia does not dictate other countries' policies and therefore should not be dictated to, particularly regarding how it secures its energy needs.

"We must safeguard our country's independence as part of our responsibility to the nation," he said.

The minister noted that Indonesia still relies heavily on imported crude oil and must ensure sufficient fuel reserves to meet domestic demand.

"As long as the imports comply with existing regulations, it does not matter where the oil comes from. We will import it," Bahlil said.

Long-Term Energy Security Strategy

The move follows President Prabowo Subianto's issuance of Presidential Regulation No. 26 of 2026 on the procurement of crude oil, fuel, and liquefied petroleum gas (LPG) to strengthen Indonesia's national energy security.

Under the regulation, Bahlil has instructed Lemigas to oversee crude oil imports from Russia.

He said assigning Lemigas to manage the imports is intended to streamline the procurement process by cutting intermediary layers that have traditionally been involved in energy imports.

The arrangement also allows Indonesia to conduct government-to-government (G-to-G) energy transactions directly with supplier countries, Bahlil added.


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