Indonesia weighs import schemes for Russian crude supply

By Cepi Setiadi

Indonesia is preparing a regulatory framework to facilitate a planned crude oil import deal with Russia, as authorities assess procurement and financing options to secure supply through the end of the year.

Deputy Minister of Energy and Mineral Resources Yuliot Tanjung said the government is considering two main schemes to execute the deal, either through state-owned enterprises or a public service agency structure.

The plan involves importing around 150 million barrels of crude oil, which remains under negotiation following recent bilateral discussions.

“We are preparing the instruments on how the imports will be carried out, whether through state-owned enterprises or a public service agency,” Yuliot said.

Read also: Government targets Russian crude delivery this month

Under the state-owned enterprise route, procurement would need to comply with existing tender rules and consider current supply contracts. The alternative public service agency, or BLU, scheme could offer more flexibility, particularly in terms of financing arrangements.

Authorities are also evaluating logistics and delivery routes to ensure efficient supply. Imports are expected to be carried out gradually, given Indonesia’s limited domestic storage capacity.

 “It cannot be done all at once, so it will be implemented in stages,” Yuliot said.

In parallel, Indonesia is also exploring imports of liquefied petroleum gas from Russia, while continuing to diversify supply sources, including engagement with suppliers in the United States.

The imported crude is expected to support not only fuel demand but also industrial activity, including as feedstock for petrochemicals and mining-related sectors.

The government said a multi-source procurement strategy, supported by regulatory adjustments, is aimed at ensuring stable supply of crude oil and LPG amid evolving global energy dynamics.

Editing by Alexander Ginting