Bahlil Says Indonesia Processing Second Phase of Russian Oil Imports

The Ministry of Energy and Mineral Resources (ESDM) is processing the second phase of crude oil imports from Russia as part of a long-term contract between Indonesia and Russia.

Energy and Mineral Resources Minister Bahlil Lahadalia said the first phase of oil imports from the country has already arrived in Indonesia, and the second phase is now being processed.

He stressed that the continuation of these imports is part of the government’s effort to strengthen the national oil reserves.

“The first phase is already done. The second phase is underway. We will make a long-term contract,” Bahlil said when met at the Ministry of Energy and Mineral Resources office in Jakarta on Wednesday (5/8/2026).

Bahlil underlined that the crude oil procurement is being carried out directly by the state through the Oil and Gas Testing Centre (Lemigas) and is not a corporate action by PT Pertamina (Persero).

He emphasised that the move was taken to ensure Indonesia’s energy sovereignty remains protected without intervention from other countries.

“And remember, the procurement is not being done by Pertamina, but by the state. So the state must not be intervened by other countries. This is the state. The importer is the state,” Bahlil asserted.

With the state-managed import scheme, the government has full discretion to distribute the oil for the benefit of the people and the nation’s independence.

“After the state takes it, then the state decides where to allocate it for the interests of the people, the nation and the state. That is the state’s affair. And our country adheres to the principle of being free and active,” he continued.

Bahlil expressed hope that Indonesia’s primary energy resilience will become stronger in facing future global geopolitical dynamics.

“We do not dictate to other countries, but other countries also must not dictate to us. Our national independence must be maintained as part of our devotion to the Motherland,” he concluded.

The Ministry of Energy and Mineral Resources is preparing a larger role for Lemigas in the governance of national energy procurement. Through Presidential Regulation (Perpres) Number 26 of 2026, Lemigas has the opportunity to become one of the Public Service Agencies (BLU) that can carry out procurement, including imports of crude oil and fuel.

Deputy Minister of Energy and Mineral Resources Yuliot Tanjung previously said the government will not form a new BLU to carry out this function. Instead, the government will optimise existing institutions within the Ministry of Energy and Mineral Resources.

“So we will optimise the use of existing BLUs, one of which is Lemigas,” Yuliot said at the Ministry of Energy and Mineral Resources on Friday (29/5/2026).

According to Yuliot, the arrangement is part of the implementation of Presidential Regulation Number 26 of 2026 concerning Domestic Oil Procurement, which was recently issued by the government. The regulation provides room not only for state-owned enterprises (BUMN) but also for BLUs in the energy sector to carry out oil procurement.

Nevertheless, he explained that the government still prioritises domestic energy supply. The regulation stipulates that crude oil produced by cooperation contract contractors (KKKS) can be prioritised to meet domestic needs, especially when global supply is limited.

“So from the Perpres, crude procurement can come from domestic production, from domestic K3S companies. Because there is a global supply limitation, if there is an export commitment from K3S companies, it can be marketed domestically. And the price is in accordance with the ICP price, so as not to disadvantage the KKKS companies themselves,” Yuliot explained.

Special Envoy of the President for Energy and Environment Hashim Djojohadikusumo previously said Indonesia obtained 150 million barrels of crude oil from Russia at a special price.

Hashim said the oil supply obtained at a special price was the result of President Prabowo Subianto’s visit to meet President Vladimir Putin at the Kremlin Palace in Moscow on Monday (13/4/2026).

“Indonesia now has a commitment from the Russian government, 150 million barrels that we can store in Indonesia to face economic turmoil problems,” Hashim said during the Economic Briefing 2026 event at Menara Patra Jasa, Jakarta on Thursday (23/4/2026).

Initially, in the meeting with Putin, Hashim explained, Russia agreed to send 100 million barrels at a special price. However, Russia increased the amount by 50 million barrels for Indonesia to face global turmoil.

“He (Prabowo Subianto) went to Moscow, met President Putin for 3 hours and got a commitment from President Putin that 100 million barrels of oil would be sent to Indonesia immediately. 100 million barrels at a special price. And if Indonesia needs more, an additional 50 million has been added,” Hashim said.