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Resty Woro Yuniar

Indonesia plans to press ahead with discounted Russian crude oil imports to secure domestic energy supplies and manage fiscal pressures, despite the risk of higher US tariffs as Washington moves to tighten economic pressure on Moscow.
On Friday, US President Donald Trump signed into law an act that would give him authority to impose sanctions on Russia and slap tariffs of up to 100 per cent on the top five buyers of Russian crude oil, gas and military equipment, or countries that help Moscow evade sanctions.
The legislation, named the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, also targets Russia’s shadow fleet of oil tankers.
The term refers to a network of ageing or obscurely owned vessels that Russia uses to transport oil while seeking to evade Western sanctions and the Group of Seven’s price cap on Russian crude. The ships often operate under complex ownership structures and flags of convenience, making them harder to trace and regulate.
In April, the European Commission sanctioned Indonesia’s Karimun port for its “connections with the shadow fleet and circumvention of the oil price cap”.

A day after the US Congress passed the Graham Act, Indonesia’s Minister of Energy and Mineral Resources Bahlil Lahadalia said the second phase of Russian crude oil imports was still on track.
“Our crude oil supply is, God willing, secure, including those supplied by Russia. I will explain the technical aspects of [the second phase of crude oil import] from Russia at the appropriate time,” Bahlil told reporters on September 17.
Indonesia received around 770,000 barrels of Russian crude oil valued at about US$75 million under the first phase in June, according to Bloomberg, citing customs data. The oil was delivered by the Sierra tanker under a Cameroon flag.
The tanker is sanctioned by several countries including Britain, the European Union, Canada and Australia.
In April, Hashim Djojohadikusumo, President Prabowo Subianto’s brother and his special energy envoy, said Jakarta had secured a commitment from Moscow for 150 million barrels of crude oil “at a special price”, of which 100 million barrels would be sent immediately and the rest would be bought out of necessity.
The government’s fuel import decisions would always be based on “economic principles”, Bahlil said. “We look for the best. We look for the cheaper one, that’s what we will buy.”
Indonesia is a net importer of oil, as domestic production of about 600,000 barrels a day cannot fulfil its demand of more than 1.6 million barrels per day. In the first six months of this year, Nigeria became the largest crude oil supplier to Indonesia, followed by Angola and Saudi Arabia, statistics agency BPS said last month.

Tariff threat
Analysts warn that Jakarta’s decision to continue buying Russian oil risks attracting higher tariffs on its own exports to the US. A 10 per cent levy is currently applied to Indonesian goods, following the signing of the Agreement on Reciprocal Trade in February.
“There is a real risk, although Indonesia’s exposure is different from that of India or China because Indonesia is not among the world’s largest buyers of Russian crude,” Ronny Sasmita, a senior analyst at the Indonesia Strategic and Economics Action Institution, told This Week in Asia.
“Indonesia should not assume that its relatively small Russian-oil purchases make it immune. Washington could look not only at the volume of purchases but also at whether Indonesia is considered to be materially supporting Russia’s energy revenues.”
Additional US tariffs would have “very large consequences”, as Indonesia’s exports to the US were much more valuable to the economy than its purchases of Russian crude oil, he said.
Michelle Brouhard, head of policy and geopolitical risk at maritime intelligence firm Kpler, said Washington’s actual enforcement of such heavy tariffs would largely depend on global crude price levels.
“I don’t think [Washington] will impose any tariffs until oil prices come down. At US$70 [per barrel], there is a risk of tariffs, but at US$100 oil, they are not trying to take more oil off the market. They are actually trying to get Ukraine to stop hitting Russian infrastructure to keep oil on the market. So, I find the odds pretty low until prices come down,” Brouhard said.

Yayan Satyakti, a lecturer in energy economics at Padjadjaran University, nevertheless suggested that Indonesia “hedge” its Russian crude purchase by importing it on a smaller scale to avoid becoming one of the top five buyers.
“Indonesia is a neutral country. We buy oil from Russia, but we are also committed to buying oil from the United States,” Yayan said. “I believe Indonesia’s policy will not harm trade relations between Indonesia and the US.”
Yayan added that buying Russian crude oil for a strategic reserve was “a lawful exercise of sovereignty” and Indonesia was not obliged to follow the “unilateral sanctions” the US and EU imposed on Moscow.
“In this difficult situation, I believe that taking oil from Russia, even in the shadow of potential sanctions, is the right decision to protect Indonesia’s energy security right now,” he said.
“If we don’t have that, it will be quite difficult for Indonesia to maintain energy accessibility and affordability, alongside managing a fiscal burden where we are experiencing very crucial challenges.”
Yayan estimated that fuel reserves in Java were enough for 28 days of consumption but stock in the eastern part of the country could last only 14 days.
To avoid higher US tariffs, Sasmita urged Jakarta to maintain dialogue with Washington, ensure full transparency that the Russian crude is for domestic energy needs, comply with applicable sanctions, and diversify its crude oil suppliers.
“The broader lesson is that Indonesia should avoid turning an energy-security decision into a geopolitical dependency,” Sasmita said.
“Russia can be part of Indonesia’s energy portfolio, but it should not become the foundation of it. In the current geopolitical environment, diversification itself is an economic asset.”


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Indonesia

Tankers and cargo ships at the oil depot and container terminal of Tanjung Priok Port in Jakarta, Indonesia, in March. Photo: AFP

Storage tanks at Karimun Oil Terminal. Photo: Karimun Oil Terminal

Containers are loaded onto transport trucks at Tanjung Priok Port in Jakarta. A 10 per cent levy is currently applied to Indonesian goods exported to the US. Photo: EPA

A worker refuels a motorbike at a petrol station in Banda Aceh, Indonesia, in April. Photo: EPA

Indonesian President Prabowo Subianto addresses the 80th session of the United Nations General Assembly in New York in September 2025. Photo: Xinhua

Indonesian peacekeepers in Jakarta prepare for deployment to Lebanon as part of a UN force in August 2006. Photo: AFP

The UN Security Council meeting in New York on Thursday. Critics continue to call for council reform, arguing that veto power held by permanent members since 1945 often paralyses its response to global crises. Photo: Handout/Xinhua

Energy security comes first for Indonesia as it defies EU over Russian oil

A worker refuels a motorbike at a petrol station in Banda Aceh, Indonesia, on April 20. Photo: EPA

A gauge near oil pump jacks outside Almetyevsk in Russia, shows the pressure in the pipeline. Photo: Reuters

Indonesia’s state energy firm raises fuel prices, risking subsidy strain

A worker organises liquid petroleum gas (LPG) cylinders at a distribution center in Banda Aceh, Indonesia, in March. Photo: EPA

A worker refuels a motorbike at a petrol station in Banda Aceh, Indonesia, on Monday. Photo: EPA

A man sorts liquefied petroleum gas (LPG) cooking cylinders at his shop in Indonesia on Monday. Prices of 12kg LPG canisters have been raised in Jakarta, East Java and Central Java. Photo: EPA

A worker refuels a motorbike at a petrol station in Banda Aceh, Indonesia, on Monday. Analysts say the impact of increased prices for non-subsidised fuels is unlikely to be significant. Photo: EPA

A worker operates a fuel pump at a petrol station in Banda Aceh, Indonesia, on Monday. Analysts warn supplies of the subsidised Pertalite are tight. Photo: EPA

Western pressure on Russian oil trade brings Indonesia into focus

A Pertamina worker climbs on a gauge at a crude oil well on Bunyu island in Indonesia’s East Kalimantan province. Photo: Reuters

A Russian-flagged crude oil tanker transits the Bosphorus in Istanbul, Turkey, in July 2023. Photo: Reuters

A pedestrian walks near an office building of one of Russia’s major oil companies, Rosneft, in Moscow, on October 23, 2025. Photo: Reuters

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Analysts say Jakarta made the ‘right decision’ for the country’s energy security but urge dialogue with Washington to maintain transparency


Analysts say Jakarta made the ‘right decision’ for the country’s energy security but urge dialogue with Washington to maintain transparency.


Energy

Indonesia presses ahead with Russian oil imports despite ‘real risk’ of US penalties

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Analysts say Jakarta made the ‘right decision’ for the country’s energy security but urge dialogue with Washington to maintain transparency

Analysts say Jakarta made the ‘right decision’ for the country’s energy security but urge dialogue with Washington to maintain transparency