Indonesia Wants to Import Oil from Russia: Cheap but Not Easy

Indonesia’s plan to import crude oil and LPG from Russia is considered attractive in terms of price but harbours major challenges. Logistical factors to refinery readiness will determine whether this policy can operate effectively.

Oil and gas practitioner Hadi Ismoyo stated that the shipping distance is the primary issue in this import scheme. If the supply comes from European Russia, the transit time could reach 45 to 60 days with high logistical and insurance costs.

“The challenge lies in the shipping location. If the shipping point is in European Russia, then the shipping costs, insurance, and fleet requirements will be greater with a transit time of around 45 to 60 days,” said Hadi to Republika on Saturday (18/4/2026).

Conversely, if the shipment is made from Asian Russia, the transit time can be significantly reduced. “However, if the shipping point is in Asian Russia, the transit time can be around 15 days,” he said.

Besides logistics, technical aspects also pose challenges. Not all refineries in Indonesia are capable of processing certain types of crude oil, thus requiring specification adjustments. “Not every refinery is suitable for the type of oil from Russia, so the appropriate specifications need to be ensured,” Hadi explained.