Indonesia says Russia will supply 150 million barrels of oil as higher prices tighten supply
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People queueing at a petrol station in Banda Aceh, Indonesia, on April 14. About a fifth of Indonesia’s crude imports come from the Middle East and pass through the Strait of Hormuz.
PHOTO: EPA
JAKARTA - Russia has agreed to supply Indonesia with up to 150 million barrels of oil following President Prabowo Subianto’s recent visit to Moscow, special envoy for energy and environment Hashim Djojohadikusumo said on April 23.
Mr Prabowo met Russian President Vladimir Putin at the Kremlin last week, where they discussed strengthening strategic partnerships, including in the energy sector, Cabinet secretary Teddy Indra Wijaya said in a statement.
Like many countries, Indonesia has come under pressure from soaring global oil prices because of the war in the Middle East and has been scrambling to secure alternative suppliers.
About 20 per cent to 25 per cent of Indonesia’s crude imports come from the Middle East and pass through the vital Strait of Hormuz.
“Indonesia has now secured a commitment from the Russian government. We can store 150 million barrels in Indonesia to address economic volatility issues,” the Antara state news agency quoted Mr Hashim, who is Mr Prabowo’s brother, as saying.
Russia has agreed to supply 100 million barrels of oil to Indonesia at a special price, he said, and another 50 million barrels if needed later.
Indonesia, South-east Asia’s largest economy where fuel is heavily subsidised, is an oil producer but nevertheless a net importer.
The archipelagic nation consumes some 1.6 million barrels of fuel a day, and produces about 600,000 barrels a day, according to energy minister Bahlil Lahadalia.
The government announced fuel rationing in March and mandated a work-from-home policy of one day a week for civil servants to conserve energy stocks.
It has vowed not to increase prices of subsidised fuel in 2026. AFP
