Russia to Supply Crude Oil and Build Refineries in Indonesia

April 17, 2026 | 12:56 pm

TEMPO.CO, Jakarta - Minister of Energy and Mineral Resources, Bahlil Lahadalia, has announced that Russia is ready to supply crude oil to Indonesia. He noted that Russia has also expressed its willingness to collaborate on the development of energy infrastructure in the archipelago.

The Golkar Party Chairperson explained that this potential partnership emerged from his meetings with the Russian Energy Minister and a special envoy of President Vladimir Putin in Moscow just a few days ago. These discussions followed a meeting between President Prabowo Subianto and Putin in the Russian capital.

Bahlil reported the outcomes of these negotiations to Prabowo at the Presidential Palace in Jakarta on Thursday, April 16, 2026. "Praise be to God, the news is quite promising; we are set to receive crude oil supplies from Russia," Bahlil remarked following his meeting with the President.

He emphasized that Indonesia continues to grapple with an oil supply deficit, making imports a necessity. Bahlil pointed out that while national fuel consumption reaches approximately 1.6 million barrels per day, domestic production only hovers between 600,000 and 610,000 barrels per day.

This leaves Indonesia with a daily shortfall of roughly 1 million barrels. "Given the current global conditions, we must be proactive in seeking sources from a variety of countries," the former investment minister added.

In addition to crude oil, the government is exploring a partnership with Russia for the import of liquefied petroleum gas (LPG). Bahlil noted that Indonesia currently relies on imports for around 7 million tons of LPG annually.

According to him, diversifying supply sources is essential for Indonesia to reduce its strategic dependence on any single nation. However, Bahlil clarified that the LPG cooperation with Russia still requires two or three more stages of detailed communication.

Bahlil also revealed that the government is looking into joint ventures with Russia for the construction of domestic oil refineries. "That was one of the key points we discussed yesterday; indeed, some of their investments are ready to move forward," he said.

Nevertheless, he cautioned that the agreement has not yet reached its final form. "Finalization is pending one or two more rounds of talks with us, specifically regarding refineries and storage; we will provide an update later," Bahlil stated.

The move to import Russian crude is a direct outcome of President Prabowo’s recent state visit to Moscow. Prabowo met with President Vladimir Putin on Monday, April 13, 2026, at the Kremlin Palace to solidify bilateral ties.

Following the Kremlin meeting, Prabowo tasked Bahlil with ironing out the specifics of the cooperation with the Russian government. "President Prabowo instructed Energy Minister Bahlil Lahadalia to meet with President Putin’s special envoy and the Russian Energy Minister for more detailed discussions in Moscow," Cabinet Secretary Teddy explained in a written statement on Wednesday, April 15, 2026.

Read: Indonesia Holds Fuel Prices Steady Through Year-End on Secure Supply

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