Indonesia explores Russian oil imports after joining BRICS

Following Indonesia’s recent induction into BRICS, the Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, has expressed openness to importing oil from Russia, Indonesia Business Post reported.

The move aligns with Indonesia’s principle of free and active politics, which emphasises strategic decisions that benefit the nation. Bahlil emphasised that any potential oil imports from Russia must comply with national and international regulations.

Currently, Indonesia imports oil from the Middle East, a portion of which might already be sourced from Russia.
PT Kilang Pertamina International (KPI), a subsidiary of PT Pertamina, assured that its refineries are equipped to process various types of crude oil effectively and efficiently. Hermansyah Y. Nasroen, Corporate Secretary of KPI, noted that crude procurement is conducted in line with applicable laws, tailored to refinery specifications, and guided by market economics and Good Corporate Governance standards.

Indonesia’s BRICS membership, officially announced on January 6, under Brazil’s presidency, offers new opportunities for the country to access Russian oil at potentially lower prices. However, Luhut Binsar Pandjaitan, Chairman of the National Economic Council (DEN), stated that a comprehensive evaluation of the benefits and risks of importing Russian oil is underway.

This development highlights Indonesia’s growing efforts to diversify its energy supply while leveraging its new position within BRICS for economic and strategic advantages.