ESDM opens the door for Lemigas to import oil, including from Russia

We will optimise the use of existing BLUs, including Lemigas, for procurement. The Ministry of Energy and Mineral Resources (ESDM) has opened the possibility for the Balai Besar Pengujian Minyak dan Gas Bumi (BBPMGB Lemigas) to import oil, including from Russia, following the issuance of Presidential Regulation No. 26 of 2026. Presidential Regulation No. 26 of 2026 regulates the procurement of crude oil, petroleum products, and/or liquefied petroleum gas (LPG) for national energy security. ‘Under this regulation, Lemigas can now import,’ said Deputy Minister Yuliot during an interview at the ESDM office in Jakarta on Friday. Yuliot explained that, in addition to state-owned enterprises (SOEs) which have been conducting imports, the government now allows Energy-sector BLUs to import crude oil, petroleum products, and LPG. Pertamina has been the SOE handling energy commodity imports. The regulation is stipulated in Article 4 of Presidential Regulation No. 26 of 2026. Article 4(3) states that BLU imports in the energy sector must comply with cooperation agreements. BLUs may import based on cooperation agreements, whether intergovernmental or between the central government and foreign suppliers. ‘We will optimise the use of existing BLUs, including Lemigas, for procurement,’ Yuliot said. However, Presidential Regulation No. 26 of 2026 also permits BLUs to conduct imports outside intergovernmental or central government-foreign supplier agreements to fulfil strategic reserves and/or operational reserves, as outlined in Articles 4(6) and 4(7). Furthermore, Article 5 allows BLUs and Pertamina to import in urgent situations despite price differences based on quantity, product type, origin country, and delivery time, in accordance with purchase contract agreements. Urgent situations are determined by the minister responsible for oil and gas affairs, namely the ESDM Minister. Director General of Oil and Gas (Dirjen Migas) Laode Sulaeman explained the government needs to prepare additional regulations and import schemes, as Russian oil requires special handling. Pertamina, as an SOE in the oil and gas sector, operates using global bonds. Therefore, Pertamina must avoid actions that could breach these bonds. Pertamina’s commitment to global bonds means the ESDM must find an ideal scheme for importing Russian oil. This step is part of realising the commitment to import 150 million barrels of oil from Russia, to be implemented gradually until the end of 2026, following President Prabowo Subianto’s visit to Russia.