Indonesia imports Russian oil to bolster energy security: Bahlil

Indonesia has begun importing oil from Russia under a government-to-government (G2G) agreement aimed at enhancing its energy security, according to Energy and Mineral Resources Minister Bahlil Lahadalia. The minister confirmed this during a press briefing at the Presidential Palace complex in Jakarta on Tuesday, emphasizing that the initiative is designed to ensure sufficient domestic supplies and prevent shortages. Implementation of the deal is already underway, with the Indonesian government directly overseeing the imports. The initial phase of the agreement involves the importation of part of the 150 million barrels of oil that Indonesia has committed to purchasing from Russia. These imports are being managed through Indonesia’s oil and gas testing center, Lemigas, which is tasked with overseeing the process to streamline the supply chain and facilitate G2G procurement. This arrangement underscores the central role of the state in managing energy imports and reducing dependency on private entities. The legal foundation for these imports was laid by President Prabowo Subianto through a 2026 regulation that governs the procurement of crude oil, fuel, and liquefied petroleum gas to support national energy security. Under this regulation, public service agencies in the energy sector are permitted to import oil and related products under bilateral cooperation agreements or with foreign suppliers. Additionally, the regulation grants flexibility to state-run oil and gas company Pertamina and associated agencies to conduct imports in emergency situations, even if prices vary depending on factors such as volume, product specifications, country of origin, and delivery timelines. The energy and mineral resources minister holds the authority to declare an emergency, thereby enabling such flexible procurement strategies. In parallel, President Prabowo has directed universities to contribute to national energy security by supporting the B50 and B60 biodiesel initiatives and ethanol development through research and human resource training. This directive was issued during a limited cabinet meeting held at the Presidential Palace in Jakarta on Thursday. Minister of Higher Education, Science, and Technology Brian Yuliarto emphasized that the focus on energy security was a major point of discussion, driven by concerns over potential global instability affecting the energy sector. The government is also preparing for possible disruptions in global energy markets, particularly in light of ongoing conflicts in the Middle East. Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono outlined the government’s strategy, which includes promoting energy diversification and enforcing the B50 biodiesel mandate, effective July 1, 2026. This measure aims to reduce reliance on imported oil and enhance self-sufficiency in the energy sector. Efforts to bolster energy security extend beyond oil and gas. The government is also working to insulate the food sector from global volatility, with Yudhoyono stating that his ministry will support national priorities through infrastructure development and improved connectivity. This comprehensive approach reflects a broader strategy to mitigate risks posed by international uncertainties. Separately, Pertamina, Indonesia’s state-owned oil and gas company, has shipped its first batch of 12,830 kiloliters of B50 biodiesel, marking a significant step toward achieving the nation’s energy independence goals. This move aligns with the government’s push to increase the use of domestically produced biofuels and reduce dependence on fossil fuels. The B50 program, which mandates a blend of 50 percent biodiesel in transportation fuel, is set to expand further, with plans to reach full implementation by October.