Indonesia considers buying Russian oil

Indonesia is considering buying Russian oil which has been subject to massive European sanctions since the Russia-Ukraine conflict broke out in 2022.

Energy Minister Bahlil Lahadalia recently said that Indonesia’s entry to BRICS had opened up the possibility of Jakarta importing this oil, whose prices have been pushed below the global benchmarks by the sanctions.

However, Indonesia’s interest in Russian oil has sparked worries that the oil deal could take a toll on the Southeast Asian nation’s ties with Western allies. An EU diplomat, however, revealed the European bloc did not mind where Indonesia bought its oil even if it comes from Russia.

Meanwhile, Russian Ambassador to Indonesia Sergei Tolchenov said that his country is open to oil purchase negotiations.

He noted that Russia has engaged in some talks with Indonesia to use local currencies, rupiah and ruble for their bilateral trade as Moscow remained isolated in the international financial system.

Indonesia can only produce 700,000 and 800,000 barrels a day, only half of the national demand. It mainly imports oil from the Organisation of Petroleum Exporting Countries (OPEC) members.

The Central Statistics Agency (BPS) showed that Indonesia’s oil and gas imports totalled about $36.3 billion in 2024.