Gov’t Ensures Crude Oil Supply Until End of 2026, Diversifies Sources Through Russian Cooperation
Minister of Energy and Mineral Resources Bahlil Lahadalia and Cabinet Secretary Teddy Indra Wijaya deliver statements to the media at Merdeka Palace, Jakarta, Thursday (04/16). (Photo by: BPMI of Presidential Secretariat)
The Indonesian Government has announced it has secured a strategic cooperation agreement with Russia to strengthen national energy resilience, particularly through crude oil supplies and the development of energy infrastructure.
Minister of Energy and Mineral Resources Bahlil Lahadalia delivered the statement after meeting President Prabowo Subianto at Merdeka Palace in Jakarta, on Thursday, (04/26) as a follow-up to the President’s working visit to Russia.
“The news is, alhamdulillah, quite encouraging: we will receive crude oil supplies from Russia, and the Russian Government has also expressed readiness to develop several key infrastructures to strengthen our national energy reserves and resilience,” Bahlil said.
According to him, the follow-up cooperation covers long-term partnerships in the energy sector, including fulfilling national oil needs.
He also noted that Indonesia’s fuel oil consumption stands at around 1.6 million barrels per day, while domestic production (lifting) is only around 600-610 thousand barrels per day.
“We still import about 1 million barrels per day. Given the current global situation, we must secure oil reserves from diverse sources, not just one country, but from almost all countries,” he explained.
To safeguard short-term national energy supply, the Minister noted that the Government has secured crude oil availability until the end of 2026, adding that this measure follows the President’s directive to maintain energy resilience amid ongoing global uncertainties.
“For crude oil, supplies are secure for one year from this month until December, so there’s no need to worry. What we need to do now is boost our refinery production,” Bahlil continued.
Beyond crude oil, the Government has also explored opportunities for cooperation to meet national LPG needs, which are currently covered largely through imports of around 7 million tons per year.
As for crude oil supply cooperation, Bahlil stated the agreement process is now nearing finalization.
“We are now diversifying our energy sources, and we expect to receive support for this effort. However, it will still require work and two or three further rounds of communication. As for crude oil, I believe the agreement is already close to final,” he added.
Regarding cooperation dynamics with other countries, including the United States, the Minister stressed that the Government places national interests at the center of every energy policy decision.
“Our annual crude oil needs are about 300 million barrels. Therefore, we will source supply from whatever it best serves our national interest,” he remarked.
This move signals a new direction in Indonesia’s energy policy that is more adaptive, open, and sovereign to ensure secure, stable, and sustainable energy supplies for all Indonesians. (BPMI of Presidential Secretariat) (EST/EP)
