Indonesia Prepares Second Phase of Russian Oil Import

September 11, 2026 | 05:37 pm

TEMPO.CO, Jakarta - Indonesian Energy and Mineral Resources Minister Bahlil Lahadalia stated that crude oil imports from Russia remain ongoing, with the government currently preparing for a second phase of procurement.

According to Bahlil, the purchasing transaction continues to involve Lemigas, a public service agency, as the contracting authority. Refining and processing operations will be carried out through a partnership between Lemigas and state energy firm Pertamina.

"The crude oil purchase from Russia is part of a government-to-government (G2G) framework, which is then executed on a government-to-business (G2B) basis," he told reporters at the Ministry of Energy and Mineral Resources office in Jakarta on Friday, September 11, 2026.

The Golkar Party chair noted that the government must carefully evaluate scale and priorities when importing crude oil given current global economic conditions. He emphasized that all procurement choices must strictly adhere to regulatory standards while remaining economically viable.

"Imagine, while the world faces hardship, we remain selective. I prioritize the people's interests above all else, particularly as our national sovereignty must remain free from foreign intervention because we adhere to the doctrine of a free and active foreign policy," he said.

Bahlil has not yet disclosed the precise volume of crude oil slated for import in this second phase. Lemigas previously brought in 770,000 barrels of Russian crude, which arrived at Balikpapan on June 29, 2026.

Earlier, the government expanded Lemigas' mandate as the manager and executor for importing crude oil, refined fuel, and liquefied petroleum gas under Ministerial Decree No. 224.K/MG.03/MEM.M/2026.

The decree further guarantees the off-taking and domestic distribution of supplies secured by Lemigas. State-owned energy giant Pertamina and its distribution arm Pertamina Patra Niaga are required to absorb Lemigas' imports while providing technical, operational, and commercial support for the assignment.

This mandate serves as the implementation of Presidential Regulation No. 26 of 2026 regarding the procurement of oil, fuel, and LPG to safeguard national energy resilience. The regulation was enacted following a meeting between President Prabowo Subianto and Russian President Vladimir Putin at the Kremlin in Moscow in April 2026.

During that summit, Indonesia secured a commitment for 150 million barrels of Russian crude to reinforce national energy reserves amid Middle Eastern geopolitical turmoil that disrupted supply chains and inflated global prices.

The July 19, 2026 edition of Tempo Magazine previously examined the potential risks stemming from Russian oil imports. The complete investigative coverage is available in the report titled: Russian Crude Oil Imports Fraught with Risk.

Adil Al Hasan contributed to this report

Read: Indonesia's Crude Oil Price Rises to US$89.43 per Barrel

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