Indonesia Receives First Russian Crude Shipment Amid Supply Disruptions

JAKARTA_Indonesia has received its first shipment of Russian crude oil under a bilateral agreement to import up to 150 million barrels, as the Southeast Asian nation moves to strengthen fuel reserves following supply disruptions linked to the closure of the Strait of Hormuz, officials said.

The first delivery forms part of an energy cooperation agreement reached by Indonesia and Russia in April after Indonesian President Prabowo Subianto and Russian President Vladimir Putin agreed in Moscow to expand collaboration on energy security. The arrangement comes as Jakarta seeks alternative sources of crude amid disruptions to energy shipments from the Gulf following the U.S.-Israeli war on Iran.

Indonesia imported about 60% of its fuel requirements last year, with roughly one-fifth of those imports originating from the Middle East. The government has said diversifying supply sources has become increasingly important as geopolitical tensions continue to affect global energy markets.

Energy and Mineral Resources Minister Bahlil Lahadalia said Indonesia had completed the first phase of imports and stressed that securing adequate fuel supplies remained the government’s priority.

“We have completed the first phase (of imports)… Other countries should not interfere with our national sovereignty. We need oil,” Lahadalia told reporters in Jakarta on Tuesday.

The minister also said the government’s priority was maintaining national fuel reserves, adding that Indonesia would procure oil from available sources provided such purchases complied with applicable rules.

Russian oil exports have faced increased international scrutiny since Moscow’s invasion of Ukraine in 2022, which prompted the United States and European countries to impose restrictions on related transactions.

According to the report, Washington later introduced a temporary waiver during the Hormuz crisis, allowing countries to purchase sanctioned Russian oil to help contain global energy prices. The waiver expired in mid-June, while uncertainty remains over whether earlier restrictions have since resumed as supply disruptions persist.

Local media, citing customs data compiled by Big Trade Data, reported that approximately 770,000 barrels of Russian crude valued at about $75 million arrived at Indonesia’s Balikpapan port on June 29. The shipment was loaded at Russia’s Kozmino port and transported aboard the tanker Sierra.

Dwi Anggia, a spokesperson for Indonesia’s Ministry of Energy and Mineral Resources, said the procurement was conducted through a government-to-government arrangement rather than the country’s usual commercial import process.

Anggia said the purchase was handled by Lemigas, the ministry’s oil and gas research and development agency, marking a departure from Indonesia’s standard practice under which state-owned energy company Pertamina manages most crude imports.

“The Indonesian government is making every effort to strengthen national energy security,” Anggia told Arab News on Wednesday.

She said ensuring reliable energy supplies for the public remained a government priority amid a rapidly evolving geopolitical environment, as Indonesia continues to seek stable sources of crude oil to safeguard domestic fuel availability.