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Indonesia Could Receive 30 Million Barrels of Crude Oil Free From UAE

Antara
October 27, 2026 | 11:15 pm
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A vessel is anchored off the coast of Sharjah in the United Arab Emirates on August 3, 2026. (AFP Photo)
A vessel is anchored off the coast of Sharjah in the United Arab Emirates on August 3, 2026. (AFP Photo)

Jakarta. Indonesia could receive up to 30 million barrels of crude oil from the United Arab Emirates (UAE) free of charge, including shipping costs, according to upstream oil and gas regulator SKK Migas chief Djoko Siswanto.

Djoko said the offer was discussed on Tuesday when he accompanied Chief Downstream Industry and Energy Minister Bahlil Lahadalia in a meeting with the UAE ambassador in Jakarta.

“The Abu Dhabi ambassador said they would send up to 30 million barrels of oil to Indonesia at no cost, with no working capital required and shipping provided free of charge. This is good news for us,” Djoko said at an event marking the completion of the front-end engineering design (FEED) for the Abadi Masela LNG project in Jakarta.

Djoko did not elaborate on the proposed arrangement, including the delivery schedule, financing structure or the specific terms of the offer.

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The meeting also discussed progress toward the final investment decision (FID) for a gas project in the Andaman Block, offshore Aceh.

The potential UAE supply comes as Indonesia seeks to strengthen its energy security by securing supplies from multiple countries. Bahlil is scheduled to visit India and China to seek assurances on energy supplies, while state-owned energy company Pertamina has been tasked with pursuing long-term supply contracts.

The government is also changing its energy import procurement mechanism under Presidential Regulation No. 107/2026, which provides for the procurement of crude oil, fuel and liquefied petroleum gas (LPG) through government-to-government (G2G) or government-to-business (G2B) arrangements.

Under the new mechanism, the government negotiates procurement deals with supplier countries, while a designated public service agency handles procurement and supplies energy to Pertamina.

The policy aims to strengthen domestic energy supply certainty as Indonesia remains dependent on imports, particularly for crude oil and LPG.

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