Indonesia has agreed to purchase crude oil and liquefied petroleum gas (LPG) from Russia, the country’s Energy Ministry in Jakarta confirmed on Tuesday. The deal comes as Jakarta seeks to strengthen its energy security amid growing global supply disruptions and rising fuel prices.
Energy Minister Bahlil Lahadalia said the agreement would help Indonesia boost its crude oil reserves and ensure stable LPG supplies. “We have achieved quite good results, allowing us to increase our crude oil reserves. In addition, we will also be able to obtain LPG,” he said following talks with Russian counterpart Sergey Tsivilev.
LPG, a liquefied mixture of propane and butane, is widely used in Indonesia for cooking, heating, and transport. The Southeast Asian nation has historically relied heavily on Middle Eastern oil imports, sourcing roughly a quarter of its crude through the Strait of Hormuz—currently under US maritime restrictions.
The agreement was reached during a visit by Indonesian President Prabowo Subianto to Moscow, where he held extended talks with Russian President Vladimir Putin. The two leaders also discussed expanding cooperation in nuclear energy and the minerals sector.
Russian crude could be shipped from Pacific ports in the country’s Far East, transiting the South China Sea and the Strait of Malacca—routes already used to supply China and other Asian buyers. Russia has redirected a significant share of its energy exports to Asia following sweeping EU and US sanctions that curtailed its access to Western markets.
Indonesia joined BRICS in 2025, becoming the first Southeast Asian member of the bloc. The move is seen as part of Jakarta’s broader strategy to diversify its international partnerships and deepen ties with non-Western economies, including Russia, a founding member of the group.
Representatives from several Russian energy firms—including Rosneft, Ruschem, Zarubezhneft, and Lukoil—attended the bilateral meeting in Moscow. Officials said further negotiations on long-term supply contracts are expected in the coming months.
