Indonesia Imports Russian Oil via Lemigas Under Government-to-Government Scheme
Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia has stated that the first phase of fuel oil (BBM) imports from Russia has been realised. Bahlil affirmed that the Russian oil imports were carried out at the request of the Indonesian government.
Bahlil said the procurement of oil from Russia was conducted through a government-to-government (G2G) mechanism. The government appointed the Oil and Gas Testing Centre (Lemigas) as a Public Service Agency (BLU) to handle the technical aspects of the imports.
“Friends, I have already explained that the first phase has been realised. The party carrying out the imports is the Indonesian government. I repeat, the importer of Russian fuel is the Indonesian government, through G2G, and we from the government assigned Lemigas as the BLU within the ESDM Ministry to carry it out,” said Bahlil when met at the State Palace in Jakarta, quoted on Wednesday (29/7/2026).
Unfortunately, Bahlil did not elaborate on how much fuel was imported from Russia in the first phase.
The import policy is one of the government’s efforts to maintain domestic energy stocks above the national minimum standard.
Bahlil assured that the procurement is meant to anticipate the risk of supply shortages caused by disruptions to global supply chains.
“And this will continue because the aim is to safeguard our reserves. We must avoid any shortage and at the same time ensure that our domestic energy remains available,” he added.
Amid the global geopolitical situation, the government has also guaranteed that there will be no price increase for subsidised fuel. The decision was taken to ensure price stability for subsidised fuel and LPG for the wider public.
“But we can assure you that there will be no increase in the price of subsidised fuel, in line with what has already been decided. So there is no increase for subsidised fuel, including subsidised LPG,” he asserted.
Imports Through Lemigas
As is widely known, the ESDM Ministry is preparing a greater role for Lemigas in national energy procurement governance. Under Presidential Regulation Number 26 of 2026, Lemigas has the opportunity to become one of the Public Service Agencies (BLU) capable of conducting procurement, including the import of crude oil and fuel.
Deputy ESDM Minister Yuliot Tanjung said the government will not establish a new BLU to perform this function. Instead, the government will optimise existing institutions within the ESDM Ministry.
“So we will optimise the use of existing BLUs, one of which is Lemigas,” said Yuliot at the ESDM Ministry on Friday (29/5/2026).
According to Yuliot, this arrangement is part of the implementation of Presidential Regulation Number 26 of 2026 on Domestic Oil Procurement, recently issued by the government. The regulation opens the door not only to state-owned enterprises (BUMN) but also to energy-sector BLUs to conduct 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, particularly when global supply faces constraints.
“So under the presidential regulation, crude procurement can come from domestic production, from domestic KKKS companies. Because there are limitations in global supply, export commitments from KKKS companies can be directed to the domestic market. And the price follows the ICP price, so it does not disadvantage the KKKS companies themselves,” Yuliot explained.