Russia has agreed to supply up to 150 million barrels of oil to Indonesia following President Prabowo Subianto’s visit to Moscow earlier this month, The Moscow Times reported on Thursday.
Prabowo met with Russian President Vladimir Putin in Moscow last week, where the two leaders discussed strengthening strategic cooperation, specifically in the energy sector, Indonesia’s cabinet secretary Teddy Indra Wijaya said in a statement.
Indonesia has been seeking alternative energy suppliers amid rising global oil prices, as it looks to reduce exposure to supply disruptions linked to geopolitical tensions in the Middle East.
The country typically sources around 20-25% of its crude imports from the Middle East, with shipments passing through the Strait of Hormuz, a key global energy chokepoint.
“Indonesia has now secured a commitment from the Russian government,” Hashim Djojohadikusumo, Prabowo’s brother and special envoy for energy and the environment, was quoted saying by state news agency Antara.
“We can store 150 million barrels in Indonesia to address economic volatility issues.”
The proposed supply arrangement would allow Indonesia to bolster its strategic reserves and reduce exposure to heavy disruptions affecting Middle Eastern supply routes.
The agreement comes as the EU steps up pressure on Russia’s oil exports, including listing Indonesia’s Karimun oil terminal under its 20th sanctions package targeting Moscow’s war against Ukraine.
As of now, oil prices have jumped four percent after Iran vowed not to reopen the Strait of Hormuz so long as a US naval blockade remained in place despite a ceasefire extension.
No timeline for deliveries or pricing details have been disclosed.