Indonesia weighs wider energy imports, including Russia

By Calvin Purba

Indonesia is considering widening its energy import sources to ensure domestic supply and secure competitive prices, Energy and Mineral Resources Minister Bahlil Lahadalia said on Tuesday, as global geopolitical tensions persist.

Bahlil said Southeast Asia’s largest economy remained open to importing energy from any country, provided supply is available and prices are competitive.

“All countries are possible partners. What matters for us now is availability and, secondly, competitive pricing,” he said.

He added that Indonesia could consider importing from Russia, noting that the United States has also resumed certain imports from the country.

“Why not? Even the United States has now opened imports from Russia,” Bahlil said.

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Indonesia has been seeking to diversify its fuel import sources in recent years to reduce reliance on the Middle East.

The country imports about 7.8 million tonnes of liquefied petroleum gas (LPG) annually, with around 75% currently sourced from the United States, roughly 20% from the Middle East, and the remainder from countries including Australia.

Bahlil said the government plans to further cut dependence on Middle Eastern supplies by shifting part of its LPG imports to the United States and other suppliers, and by securing long-term contracts.

“Given the current situation, we will continue diversifying supplies away from the Middle East and secure long-term contracts with the United States and several other countries,” he said.

Editing by Reiner Simanjuntak