Government Prepares BLU Regulation for Russian Oil Imports

Jakarta, CNBC Indonesia - The Ministry of Energy and Mineral Resources (ESDM) is preparing a regulatory framework to establish a Public Service Agency (BLU) as the manager of crude oil imports from Russia. This will provide import flexibility while anticipating differences in specifications from global supply sources.

Deputy Minister of Energy and Mineral Resources Yuliot Tanjung explained that the government has issued a Presidential Regulation No. 26 of 2026 to regulate the import mechanism, including through BLU. He stated that the government can now assign state-owned enterprises (SOEs) or BLUs to execute international oil purchasing commitments.

‘For Russian oil imports, we need to first determine the mechanism. Under Presidential Regulation No. 26 of 2026, imports can be handled directly by SOEs such as Pertamina or by BLUs,’ Tanjung said during a meeting at the DPR RI building in Jakarta on Monday (25/5/2026).

Preparing specific regulations for Russian oil imports is crucial given the distinct characteristics of Russian crude compared to supplies from the Middle East or the United States. The government aims to ensure all aspects, from quality to price fluctuations and delivery timelines, have a strong legal basis to avoid regulatory obstacles.

‘There can be differences, first in oil quality, then delivery time, location, and price fluctuations. These must be regulated under the Presidential Regulation to avoid legal issues later,’ he added.

The government continues to assess the effectiveness of using these instruments for import management. ‘Both SOEs and BLUs will be regulated,’ he concluded.

Previously, Energy and Mineral Resources Minister Bahlil Lahadalia stated that Russian crude oil imports are expected to arrive in Indonesia within one to two weeks. He noted that the import agreement and contracts have been finalised, with only technical shipment details remaining.

‘The deal is finalised. Contracts are signed. Now it’s about the technicalities of shipment, and it could be within one or two weeks,’ Bahlil said at the ESDM ministry on Monday (11/5/2026).