Russia has agreed to supply up to 150 million barrels of oil to Indonesia following President Prabowo Subianto’s recent visit to Moscow, officials confirmed on Thursday. The agreement came after Prabowo met Vladimir Putin at the Kremlin last week to discuss strengthening strategic cooperation, particularly in the energy sector.
According to officials, Indonesia secured a firm commitment from Moscow to help stabilize its energy supply amid rising global oil prices. The surge in prices, driven by tensions in the Middle East, has forced many countries, including Indonesia, to seek alternative suppliers. Typically, around 20–25 percent of Indonesia’s crude imports originate from the region and transit through the critical Strait of Hormuz.
Furthermore, special envoy Hashim Djojohadikusumo stated that Russia would initially provide 100 million barrels at a discounted rate, with an option to supply an additional 50 million barrels if required. He added that Indonesia plans to store the oil domestically to cushion the economy against future volatility.
Although Indonesia is Southeast Asia’s largest economy and an oil producer, it continues to rely on imports to meet domestic demand. The country consumes approximately 1.6 million barrels per day while producing only about 600,000 barrels daily, according to Energy Minister Bahlil Lahadalia.
Consequently, the government has introduced energy-saving measures, including fuel rationing and a weekly work-from-home policy for civil servants. At the same time, authorities have pledged to maintain current subsidized fuel prices throughout the year to shield consumers from rising costs.
