Indonesia secures long-term Russian crude supply, discusses LPG and refinery investment

By Calvin Purba

Indonesia has secured a long-term crude oil supply agreement with Russia and is exploring further cooperation on liquefied petroleum gas (LPG) and energy infrastructure, Energy Minister Bahlil Lahadalia said Thursday.

The agreement follows a meeting between President Prabowo Subianto and Russian President Vladimir Putin.

Bahlil said crude supply for the remainder of 2026 has been secured, allowing Indonesia to focus on increasing utilization of domestic refining capacity.

Read also: Indonesia eyes Russian crude supply as Prabowo meets Putin in Moscow

He said discussions also covered potential LPG supply cooperation, as the country currently imports around 7 million tonnes of LPG annually. Further negotiations are still required before any agreement is finalized.

In addition to supply arrangements, Russia has expressed interest in investing in refinery and storage infrastructure, though Bahlil said the plans require further rounds of discussion before implementation.

He added that the scale of the proposed projects would be smaller than the Tuban grass root refinery project involving Rosneft.

Bahlil said Indonesia is seeking to diversify energy supply sources amid global uncertainty and will continue to engage with multiple partners.

He said pricing remains a key consideration, with Indonesia aiming to secure crude at or below prevailing market levels.

Editing by Alexander Ginting