For the first time in many years, Indonesia is not receiving oil from the west. On May 2, Indonesia's Energy Minister Bahlil Lahadalia announced that Russian crude oil would arrive soon. Indonesia has agreed to import 150 million barrels of Russian oil by the end of 2026, working with three major Russian oil companies: Rosneft, Lukoil, and Zarubezhneft.
Indonesia faces a serious problem. The country uses about 1.6 million barrels of oil daily but produces only 600,000 barrels at home. Normally, about a quarter of imports travel through the Strait of Hormuz between Iran and Oman. However, Iran closed this waterway on March 4 after airstrikes, reducing shipping by more than 90 percent.
President Prabowo Subianto met Russian President Vladimir Putin in April to arrange the deal. The oil will travel from Russian ports through the South China Sea and the Strait of Malacca, avoiding Hormuz completely. Indonesia's state oil company Pertamina says its refineries can process Russian crude.
Russia has also offered to invest in Indonesian storage and refining facilities. Talks continue about liquefied petroleum gas and nuclear energy. For Bahlil, the priority is clear: Indonesia needs fuel, and Russia is delivering it.