SEATTLE (Oil Monster): Indonesia is moving forward with plans to import discounted Russian crude, despite risks of potential U.S. penalties.
The country’s Energy and Mineral Resources Minister Bahlil Lahadalia clarified that the next phase of Russian crude purchases remained on track. He said Jakarta would select suppliers based largely on price and fiscal considerations, alongside energy security concerns. In the first phase, Indonesia had imported around 770,000 barrels of Russian crude oil valued at about US$75 million.
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The policy faces uncertainty after U.S. President Donald Trump signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 into law. The legislation authorizes tariffs of up to 100% on goods from the five largest importers of Russian-origin crude or natural gas, as well as countries found evading sanctions.
It is not yet clear how the U.S. authorities will apply the new powers. However, analysts warn that Jakarta’s modest Russian purchases are unlikely to escape U.S. scrutiny. It must be noted that Indonesia remains heavily dependent on imported crude because domestic production is far below consumption.
The Minister noted that Indonesia’s fuel import decisions would always be based on “economic principles. According to officials, Russian oil could ease pressure on the state budget, he added.
Meanwhile, Jakarta could respond by maintaining a diversified supplier base, increasing transparency around Russian purchases and continuing discussions with Washington.
