Lemigas Signs Contract for Russian Oil Imports

Minister of Energy and Mineral Resources Bahlil Lahadalia has stated that the process of importing crude oil from Russia is underway, with the contract signed by the Public Service Agency (BLU) Lemigas, which operates under the Ministry of Energy and Mineral Resources. “The contract has been executed by Lemigas. The volume could grow even larger in the future,” Bahlil told reporters after attending the CNBC Energy Forum in Jakarta on Thursday, 25 June 2026. However, Bahlil could not yet confirm the schedule for the delivery or arrival of the oil. He emphasised that the import process has proceeded through a government-to-government cooperation framework between Indonesia and Russia. The opportunity for Lemigas to import oil is regulated under Presidential Regulation Number 26 of 2026 concerning the Procurement of Crude Oil, Fuel, and LPG for National Energy Security. This regulation outlines a new mechanism for procuring crude oil, fuel, and LPG, both domestically and through imports. Article 4 of the regulation stipulates that imports can be carried out through government-to-government agreements, cooperation between the central government and overseas suppliers, and/or cooperation between energy sector business entities and overseas suppliers. Furthermore, Article 2 paragraph (2) states that if imports are conducted through government-to-government agreements or central government cooperation with overseas suppliers, the implementation can be carried out by a public service agency in the energy sector and/or a state-owned enterprise. Previously, Vice Minister of Energy and Mineral Resources Yuliot Tanjung explained that oil and gas commodity imports could only be conducted by licensed business entities, such as state-owned PT Pertamina (Persero) or private companies. The plan to import oil from Russia first emerged in mid-April 2026 as a follow-up to President Prabowo Subianto’s visit to Moscow, where he met President Vladimir Putin at the Kremlin on 13 April 2026 to discuss energy cooperation, including crude oil supply. Beyond crude oil, the government is also open to importing LPG from Russia. Bahlil explained that national LPG demand currently stands at around 8.6 million tonnes per year, while domestic production is only about 2 million tonnes per year. This gap makes imports difficult to avoid. LPG demand is also expected to continue rising with the operation of new petrochemical facilities, including a Lotte Chemical plant that requires approximately 1.6 million tonnes of LPG annually. Consequently, the government is actively seeking additional energy supplies from various sources, including Russia. Bahlil did not provide details on the specific import volumes for crude oil or LPG, but noted that pricing would follow market mechanisms and the outcome of negotiations between the two countries.