Advertisement
Western pressure on Russian oil trade brings Indonesia into focus
Analysts say Indonesia’s energy demand could draw scrutiny as Moscow seeks new buyers, potentially complicating US trade talks
Reading Time:3 minutes
Why you can trust SCMP
2
As Western pressure tightens on traditional buyers of Russian crude, analysts say Indonesia’s status as a fast-growing net oil importer with limited fiscal headroom could position it as a potential new market for Moscow’s discounted supplies.
But any shift towards Russian barrels would carry diplomatic risks, they add, particularly as Jakarta seeks to conclude sensitive trade negotiations with Washington and avoid complicating ties with the US and its allies.
Indonesia has already come under closer international scrutiny in recent weeks. A report by Reuters early this month cited ship-tracking data from commodities intelligence firms Kpler and Vortex as indicating that two tankers carrying Russian crude had conducted ship-to-ship transfers near Hong Kong, with the oil later reported to have been discharged at ports in Indonesia as recently as January.
Advertisement
Separately, it was reported last week that the European Union was considering extending its sanctions regime to include ports in Georgia and Indonesia’s Karimun, which, according to a proposal drafted by the European External Action Service and the European Commission, had frequently handled Russian crude.
Indonesian authorities and state energy firm Pertamina have denied importing Russian oil, disputing suggestions that the shipments involved Russian crude and saying they operate in accordance with the law.
Advertisement
Advertisement
Select Voice
Select Speed
1.00x