Russian Oil Import Scheme Prepared, Government Weighs BLU and SOE Options

The government is preparing a scheme for importing Russian oil with a commitment of 150 million barrels. Two options are being discussed for its implementation.

Deputy Minister of Energy and Mineral Resources (ESDM) Yuliot Tanjung stated that the government is considering appointing an importer. The choice is narrowing to a Public Service Agency (BLU) or a State-Owned Enterprise (BUMN), namely PT Pertamina (Persero).

“So now we just need to determine the instrument for how we import it. Whether directly through a BUMN or BLU? These are two options, and we are preparing the regulatory framework,” he said when met at the Ministry of ESDM, Jakarta, on Friday (24/4/2026).

“If it’s a BUMN, there are consequences, and if it’s a BLU, what are the advantages, including financing, that’s also being discussed between ministries and agencies,” he explained.

The import commitment arose following the visit of President Prabowo Subianto and Minister of ESDM Bahlil Lahadalia to Russia in mid-April.

The realisation of the imports will be done gradually. Domestic oil storage capacity is still limited.

“This cannot be done all at once. If all at once, we would need oil storage in the country. So the imports will be carried out gradually,” he said.

The government remains committed to maintaining supplies from the United States. The commitment to purchase energy from the US is outlined in the trade agreement Agreement on Reciprocal Trade (ART).

“We already have imports from America, both crude and LPG. So we are trying to increase them to fulfil our commitments under the ART,” said Yuliot.