Indonesia's Lemigas Inks Russian Oil Imports Contract, Says Minister

Indonesia is set to import crude oil from Russia, with the contract officially signed by the Public Service Agency (BLU) of the Research and Development Center for Oil and Gas Technology (Lemigas). Minister of Energy and Mineral Resources Bahlil Lahadalia confirmed the ongoing process, stating that the import volume can be expanded in the future.

While the delivery schedule remains unconfirmed, Lahadalia emphasized that this is a government-to-government agreement between Indonesia and Russia. Lemigas is empowered to conduct these imports under Presidential Regulation Number 26 of 2026, which concerns crude oil, fuel, and LPG procurement for energy resilience. Previously, imports were restricted to permitted businesses, including state-owned enterprises like PT Pertamina (Persero) and private companies.

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The volume can be developed more in the future.

The plan to import Russian oil follows President Prabowo Subianto's visit to Moscow in April 2026, where he discussed energy cooperation, including crude oil supply, with President Vladimir Putin. Beyond crude oil, Indonesia is also evaluating the possibility of importing Liquefied Petroleum Gas (LPG) from Russia. The nation faces a substantial annual LPG deficit, with demand around 8.6 million tons against a domestic production of only 2 million tons.

This LPG deficit is expected to grow with the operation of new petrochemical facilities, such as a Lotte Chemical plant requiring approximately 1.6 million tons of LPG annually. Consequently, the Indonesian government is actively seeking additional energy supplies from various sources, including Russia. Minister Lahadalia assured that import prices would be determined by market mechanisms and bilateral negotiations.

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Under this regulation, Lemigas can conduct imports. Therefore, we will optimize the use of the existing BLUs, including Lemigas.