Key facts
- Indonesia received its first shipment of Russian crude oil, totaling approximately 770,000 barrels.
- The delivery occurred at the port of Balikpapan at the end of June.
- This shipment is part of a supply deal agreed upon with Russia in April.
- Indonesia aims to import 150 million barrels of crude from Russia this year.
- The deal is intended to diversify Indonesia's crude import sources due to Middle East disruptions.
Indonesia has received its first cargo of Russian crude oil, approximately 770,000 barrels, at the port of Balikpapan in late June, according to customs data. This marks the initial delivery under a supply deal struck with Russia in April.
The Southeast Asian nation's daily crude consumption of around 1.6 million barrels exceeds its domestic production of about 600,000 barrels per day, necessitating significant imports. Traditionally sourcing crude from the Middle East, Indonesia has sought alternative suppliers due to disruptions in the Strait of Hormuz, exacerbated by the Iran conflict.
Analysts noted that Indonesia's move to diversify its crude imports with Russian oil is driven by economic factors, refinery compatibility, and energy security considerations, rather than solely opportunistic responses to the Middle East crisis. Indonesia's Deputy Minister of Energy indicated plans to import 150 million barrels of crude from Russia this year. The Minister of Energy and Mineral Resources confirmed a one-year cooperation agreement to bolster national energy resilience, ensuring crude oil supplies until December and emphasizing the need to increase refinery production.