Indonesia Says Russian Crude Deal is Still On
Jakarta. Indonesia has clarified that it is still very much willing to import Moscow’s crude after a Russian diplomat slammed the lack of clarity in the oil purchase negotiations.
The government has been seeking to bring Russian oil to plug the gap left by the Iran war-induced supply disruptions. The import was also a major outcome from President Prabowo Subianto and entourage’s Moscow trip in April.
Russian Ambassador to Indonesia Sergei Tolchenov revealed on Wednesday that Jakarta had not provided Moscow the details needed for a contract to take place, including the purchased volumes. Asked about whether the deal is still on a day later, Energy Minister Bahlil Lahadalia simply replied: “Yes, of course!”
On the specifics, Bahlil told reporters that they were “technical matters to be discussed business-to-business”.
"But in principle, we will import [Russian oil]."
He went on to say that the purchases would take place via “government-to-government”. The minister did not expand on the details.
According to Tolchenov, Russia is open to supplying crude, but much key information is still missing. This includes the type of crude, volumes, and even the maritime ports where the Russian oil will be shipped to. He added: “How will you [Indonesia] pay? What price are you looking for? We need this specific information. Nothing about this.”
“[There should be] specific requests [from Indonesia], followed by replies and contracts. Once they are signed, [the crude] will be delivered,” the diplomat said.
Tolchenov’s comments conflicted with the government’s past statements. Indonesian senior officials had said that the country would buy 150 million barrels of Russian oil. The shipments will take place in phases throughout this year. The state-run oil research center Lemigas is also in charge of these imports.
The ministry’s spokesperson Dwi Anggia had said that Indonesia would still pursue the Russian crude despite the interim US-Iran peace deal promising to reopen the Strait of Hormuz, which handles a quarter of global oil flows. Despite the ongoing peace negotiations, Indonesia is keeping the Russian energy option open as the situation in Hormuz is still “very dynamic”.
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