Lemigas Signs Contract for Russian Oil Imports
The Minister of Energy and Mineral Resources, Bahlund Bahlil Lahadalia, stated that the process of importing crude oil from Russia is underway, managed by the Lemigas Public Service Agency (BLU) under the Ministry of Energy and Mineral Resources. According to Bahlil, the purchase contract has been signed by both parties.
“The contract has been executed by Lemigas. The volume could expand even further in the future,” Bahlil told reporters after attending the CNBC Energy Forum at the Borobudur Hotel, Jakarta, on Thursday, 25 June 2026.
However, Bahlil could not yet confirm the delivery schedule or the arrival date of the oil. He emphasised that the import process has proceeded through a government-to-government (G2G) cooperation framework between Indonesia and Russia.
Lemigas’s opportunity to import oil is regulated under Presidential Regulation (Perpres) Number 26 of 2026 concerning the Procurement of Crude Oil, Fuel, and/or LPG for National Energy Security. This regulation establishes a new mechanism for the procurement of crude oil, fuel, and LPG, both domestically and through imports.
Article 4 of the regulation specifies that imports can be conducted through government-to-government agreements, cooperation between the central government and overseas providers, and/or cooperation between energy sector business entities and overseas providers.
Furthermore, Article 2, paragraph (2) stipulates that if imports are conducted via government-to-government agreements or cooperation between the central government and overseas providers, the implementation of the import can be carried out by energy sector Public Service Agencies (BLU) and/or State-Owned Enterprises (BUMN) in the energy sector.
Previously, the Deputy Minister of Energy and Mineral Resources, Yuliot Tanjung, explained that until now, the import of oil and gas commodities could only be conducted by business entities holding the necessary permits, including State-Owned Enterprises such as PT Pertamina (Persero) and private companies.
“Therefore, under this regulation, Lemigas can conduct imports. We will optimise the use of existing BLUs, including Lemigas,” said Yuliot on Friday, 29 May 2026.
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. During that visit, Prabowo met Russian President Vladimir Putin at the Kremlin on 13 April 2026 to discuss energy cooperation, including crude oil supplies.
In addition to crude oil, the government is also exploring opportunities to import LPG from Russia. Bahlil explained that the national LPG requirement currently reaches approximately 8.6 million tonnes per year, while domestic production is only around 2 million tonnes per year. The gap between demand and production makes imports an unavoidable necessity.
LPG demand is also expected to continue rising alongside the operation of several new petrochemical facilities, including a plant owned by Lotte Chemical, which requires approximately 1.6 million tonnes of LPG per year.
Consequently, Bahlil stated that the government continues to seek additional energy supplies from various sources, including Russia. However, Bahlil has not yet detailed the specific volume of crude oil or LPG to be brought in from the country. He emphasised that pricing will follow market mechanisms and the results of negotiations between the two nations.