JAKARTA: Indonesia has received its first shipment of Russian crude oil as part of a deal to import up to 150 million barrels to stock up national reserves in the wake of shortages in Asia due to the closure of the Strait of Hormuz.
Southeast Asia’s biggest economy imported about 60 percent of its fuel needs last year, with around 20 percent coming from the Middle East.
Jakarta has been working to secure alternative supply sources in the wake of the US-Israeli war on Iran, which has caused major disruptions to global energy shipments from the Gulf.
Indonesia and Russia struck the oil supply deal in April, after they agreed to expand energy security cooperation following a meeting between President Prabowo Subianto and Russian President Vladimir Putin in Moscow.
“We have completed the first phase (of imports) … Other countries should not interfere with our national sovereignty. We need oil,” Energy and Mineral Resources Minister Bahlil Lahadalia told reporters in Jakarta on Tuesday.
Purchases of Russian crude have been a subject of scrutiny following Moscow’s invasion of Ukraine in 2022, which prompted the US and European countries to impose restrictions on such deals.
Though Washington previously prohibited countries from buying sanctioned Russian oil and petroleum products as part of reciprocal trade deals, it imposed a temporary waiver amid the Hormuz crisis, allowing countries to make such purchases to keep global oil prices down.
But as the waiver officially expired in mid-June and the disruptions on global oil supply continue, it remains unclear whether those earlier restrictions were restored.
“The Indonesian government must maintain the country’s fuel reserve. I don’t want to worry about where we get it from, as long as it does not violate any rules,” Lahadalia said.
About 770,000 barrels was delivered to Indonesia’s Balikpapan port on June 29, according to local media reports, citing customs data compiled by Big Trade Data. Valued at $75 million, the port of loading listed was Kozmino in Russia, and the oil was carried on the tanker Sierra.
According to Dwi Anggia, a spokesperson for the ministry, the “procurement from Russia was conducted through a government-to-government mechanism” and done by a public service agency, referring to Lemigas.
Lemigas is a research and development center for oil and gas technology under the Ministry of Energy and Mineral Resources. The mechanism marks a shift from standard energy imports, which are mostly handled by national oil company Pertamina.
“The Indonesian government is making every effort to strengthen national energy security,” Anggia told Arab News on Wednesday.
“Given the highly dynamic geopolitical situation, ensuring a secure energy supply for the public is a priority for the government.”
