Indonesia strengthened its energy security when Russia agreed to supply up to 150 million barrels of oil, following President Prabowo Subianto's recent visit to Moscow.
Discussions with Russian President Vladimir Putin in the Kremlin focused on strengthening strategic cooperation, especially in the energy sector. This was confirmed by Cabinet Secretary Teddy Indra Wijaya.
This move comes as Indonesia faces pressure from rising global oil prices following the conflict in the Middle East. As a net importer, Indonesia is now actively seeking alternative sources of supply to reduce its dependence on the region.
Currently, around 20 to 25 percent of Indonesia's crude oil imports come from the Middle East and through the critical Strait of Hormuz route, which is exposed to geopolitical risks.
Energy Special Envoy Hashim Djojohadikusumo announced that Russia is committed to supplying 100 million barrels of oil at special prices, with an additional 50 million barrels if needed. These supplies can also be stored domestically to deal with economic uncertainties.
Despite being an oil producer, Indonesia only produces around 600,000 barrels a day compared to domestic consumption of around 1.6 million barrels a day, according to Energy Minister Bahlil Lahadalia.
To manage supply, the government has previously implemented austerity measures including fuel rationing and a weekly work-from-home policy for civil servants.
At the same time, the government has insisted that it will not raise the price of subsidized fuel throughout the year, to reduce pressure on the people's cost of living.
