Indonesia to sign long-term contract to import Russian oil

Indonesia is planning to sign a long-term crude oil purchase contract with Russia. Energy Minister Bahlil Lahadalia confirmed that the procurement process is already in its second phase, and that following the current deliveries, the parties will formalize a permanent agreement.

The oil will not be purchased by the state-owned Pertamina, but directly by the government through a special center, Lemigas, which monitors the quality of oil and fuel.

As Lahadalia explained, this arrangement allows for direct cooperation between governments, making supplies more transparent and reliable.

The minister emphasized that how imported oil is distributed domestically is Indonesia's own responsibility and should not depend on the opinions of other countries. He also stated that the country adheres to an active and free foreign policy, does not dictate terms to others, and will not tolerate such behavior.

The first shipment of Russian oil – approximately 770 barrels, worth almost $75 million – arrived at the port of Balikpapan in Kalimantan on June 29.

The supply agreement was reached back in April, when Indonesian President Prabowo Subianto visited Moscow. At that time, Russia agreed to sell up to 150 million barrels of oil at a special price.

Currently, due to the war in Iran, passage through the Strait of Hormuz is effectively blocked, and domestic fuel prices have skyrocketed. In this situation, Jakarta is acting out of pragmatism rather than geopolitical considerations.

The minister stated that as long as purchases are carried out according to the law, Indonesia will take oil from anywhere, regardless of which country sells it.

Comments

[Alexey Alekseev_5]

It's good, of course, that there are sober-minded leaders of states, but the "special price" is disconcerting.

[Carlos]

Perhaps it was the legendary donkey, loaded with gold, that helped achieve such a price?

[silverwolf88]

A long-term contract is great... I'd like to understand the price of a barrel and whether we're trading at a loss... because our Ministry of Finance is still tied to the London Stock Exchange in pricing... and the Ministry of Economic Development, with kamikaze persistence, has been planning the budget for the fourth year in a row based on a mythical price for hydrocarbons, which is what's causing the CFA deficit.

[Mini Mokik]

The loss or non-loss is determined not only by the contract price, but also by the related contracts.

[tralflot1832]

The first batch of Russian oil has a strange special price of $96 per barrel, where the discount is for those who "do everything". Where is oil at 60?

[Montezuma]

Quote: tralflot1832

Where is oil at 60?

In the dreams of the EU gang and its leader, von der Gynecologist of All Europe.

[Fangaro]

"The first shipment of Russian oil – approximately 770 barrels, worth almost $75 million – arrived at the port of Balikpapan in Kalimantan on June 29."

At 97 US dollars per barrel? Fine. How much US dollars will be returned, and how? In dollars, in rupees, or in the form of counter-deliveries of goods offset at a certain rate?
Maybe that matters too?

[hostel]

During World War II, the Japanese imported oil from Indonesia. Why are they importing it now?

[Andrey Gladkikh]

Yes, it has domestic production, but due to modern industrial development and growing consumer consumption, its own reserves and production volumes are insufficient to meet domestic demand. Therefore, Indonesia is forced to import oil.

[_KGB-USSR_]

It's likely that since WWII, the country's need for resources, with a population of around 300 million people, has grown significantly, and its own resources are no longer sufficient...

[AllX_VahhaB]

Quote: alberigo

During World War II, the Japanese imported oil from Indonesia. Why are they importing it now?

Well, during that war, Romania was also a vital oil-producing country for the Third Reich...

[alexputnik17]

A new buyer is always a good thing. Especially in a neutral country.

[alexputnik17]

Quote: Montezuma

In the dreams of the EU gang and its leader, von der Gynecologist of All Europe

I haven't heard from the witch for a long time.

[Montezuma]

Quote: alexputnik17

I haven't heard from the witch for a long time.

But that doesn't mean her pestle and broom are sitting idle; she can't go a day without committing another nasty act. She's already made her mark, apparently deciding to partially compensate Zelensky for the damage caused by the massive strikes by the Russian Armed Forces.

BRUSSELS, August 5. /TASS/. The European Commission has expropriated the fifth tranche of €1,4 billion in revenue from the frozen sovereign assets of the Central Bank of the Russian Federation and promised to transfer it to Kyiv. This was announced in a statement by European Commission President Ursula von der Leyen.
Von der Leyen emphasized that the European Commission "will provide these €1,4 billion to Ukraine" to ensure funding for the continuation of military operations against Russia.

[anatolmd]

Well, what kind of witch is she... more like a midwife. Actually, she is a midwife by training.

[alexputnik17]

Quote: Montezuma

It has already made its mark, apparently having decided to partially compensate Zelensky for the damage caused by the massive strikes by the Russian Armed Forces.

Well... The dog barks, but the Moscow Arbitration Court upheld a claim against Euroclear for 18,2 trillion rubles. In May 2026. I'll try to find out whether there was an appeal or not. That is, whether the decision was entered into force or not. Damages were recovered there.
And neutral countries are also considering whether or not to work with specific bandits and pirates.

[alexputnik17]

On July 24.07.2026, 9, the Ninth Arbitration Court of Appeal dismissed Euroclear's appeal and sent it packing. Accordingly, the first-instance decision entered into force. Now the Ninth Arbitration Court of Appeal will issue a ruling and forward the case to the first-instance court. The Central Bank will receive a writ of execution and be authorized to seize Euroclear's assets worldwide and recover their own (Case A40-345157/2025, for those interested).
Let's assume, even if they don't recover anything... The precedent is insane. Failure to enforce the court decision will lead to an outflow of funds from other depository participants. And Euroclear is one of Belgium's largest taxpayers. So let Brussels and its EU leadership figure out how to live there.

[alexputnik17]

Quote: anatolmd

Well, what kind of witch is this... more like a midwife

She is a midwife by education and a witch by activity.
Although, of course, it would be better if she watched and went where she was supposed to, according to her education. And Europe would also be more at peace.