Indonesia Keeps Russian Crude Imports in Plans Despite U.S. Tariff Risk
Indonesia says Russian crude will remain part of its supply options when purchases are economically attractive and comply with applicable rules, even as a new U.S. sanctions law creates potential tariff risks for major buyers of Russian energy.
What Readers Should Know
- Indonesia says it will continue considering Russian crude when purchases are economically viable and comply with applicable regulations.
- A first shipment of just under 770,000 barrels arrived in Balikpapan in June and was valued at about $75 million.
- Indonesia has not yet disclosed the volume or timing of a second phase of Russian crude purchases.
- A new U.S. law authorizes tariffs of up to 100% on the five largest buyers of Russian crude or natural gas and leading sanctions-evasion facilitators.
- The tariff authority does not automatically apply to every country importing Russian energy.
- Indonesia continues to rely on imported crude because domestic oil production remains below national requirements and government targets.
MONTREAL (Oil Monster): Indonesia plans to keep Russian crude oil among its potential supply sources as the government prioritizes energy security, economic value and compliance with international rules.
Energy and Mineral Resources Minister Bahlil Lahadalia said Indonesia would continue importing Russian crude as long as transactions remained economically viable and did not violate applicable regulations.
Indonesia Says Russian Crude Remains a Supply Option
Bahlil said the government is evaluating crude supply sources according to national priorities amid continued volatility in global energy markets.
“We are looking for a priority scale that can secure our crude supply first, as long as it does not violate the rules and is economically viable,” he said in September.
The minister later said Indonesia’s crude availability remained secure, including supplies sourced from Russia, but did not provide details on the volume or timing of the next phase of imports.
Technical information on additional Russian crude purchases would be announced at a later date, he said.
First Russian Cargo Totaled About 770,000 Barrels
Indonesia received its first Russian crude shipment under the current arrangement in June.
Customs data compiled by Big Trade Data and reported by Bloomberg showed that just under 770,000 barrels were delivered to Balikpapan on June 29, with an estimated value of about $75 million.
The cargo was loaded at Russia’s Kozmino port and transported aboard the tanker Sierra.
Indonesia has said its cooperation with Russia forms part of a broader effort to strengthen national energy reserves and maintain adequate domestic supply.
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New U.S. Law Creates Uncertainty for Russian Energy Buyers
Indonesia’s plans come as the United States expands its authority to penalize major buyers of Russian energy.
U.S. President Donald Trump signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 into law on September 18.
The legislation authorizes the U.S. president to impose tariffs of up to 100% on goods from the five largest purchasers of Russian-origin crude oil, the five largest purchasers of Russian natural gas and the five leading countries facilitating Russian oil sanctions evasion.
The law does not automatically impose the maximum tariff on every country that imports Russian oil. The extent of Indonesia’s exposure will depend on the scale of its purchases, how the United States identifies countries covered by the legislation and how the administration chooses to use the new tariff authority.
Second Import Phase Has Not Yet Been Detailed
Although Indonesia has indicated that Russian crude remains part of its energy-supply strategy, officials have not yet announced the size or timing of a second import phase.
Bahlil said further technical details would be provided when appropriate.
Earlier in 2026, the government said the import arrangement had potential to expand beyond the initial shipment, but volumes remained subject to further development.
Economics and Energy Security Drive Indonesia’s Purchasing Strategy
Indonesian officials have repeatedly said crude-purchasing decisions will be based on economic considerations, supply security and regulatory compliance rather than the country of origin alone.
The government has also described Russian imports as part of its effort to strengthen national energy reserves and reduce the risk of domestic shortages.
Indonesia remains structurally dependent on imported crude. Energy Ministry data showed domestic oil production at approximately 571,731 barrels per day on September 8, below the government’s 2026 target of 610,000 barrels per day.
Indonesia Continues to Diversify Oil Supply
The Russian purchases form part of a wider strategy to diversify Indonesia’s crude supply while the government attempts to increase domestic production.
Indonesia is simultaneously offering new oil and gas blocks to investors, expanding upstream development and pursuing refinery improvements as part of its longer-term energy-security strategy.
For now, the government’s approach to Russian crude remains conditional: purchases must meet economic requirements, strengthen supply security and remain consistent with applicable regulations.