Cheap Crude Over Geopolitics: Jakarta Hunts Bargain Oil From the U.S. and Russia

JAKARTA, Investortrust.id — Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia acknowledged that the Indonesian government is actively tapping overseas suppliers to cover national fuel consumption, while maintaining a strictly commercial, price-driven selection process for sourcing crude and refined petroleum.

Speaking to journalists at the Merdeka Palace on Thursday, Sept. 17, 2026, following a plenary session of the National Energy Council (DEN) chaired by President Prabowo Subianto, Bahlil explained that sovereign procurement decisions will be guided strictly by supply availability and commercial viability. The goal remains shielding the state budget (APBN) and general households from volatile global energy shocks.

Southeast Asia's largest economy remains a structural net oil importer, exposing its public balance sheet and consumer purchasing power to severe price swings whenever global crude marches upward. By declaring an agnostic purchasing posture between major geopolitical rivals like the United States and Russia, Jakarta is executing a calculated, non-aligned commercial strategy. Securing discounted crude and refined volumes directly curbs domestic fiscal subsidy liabilities while protecting foreign-exchange reserves.

Prioritizing Price Over Provenance

The government remains committed to evaluating supply options prudently, with financial efficiency taking precedence over bilateral origins.

"The Indonesian government will always think and act cautiously by considering and prioritizing economic principles," Bahlil said on Thursday. "Alongside certainty of supply, economic efficiency is the governing principle."

While securing physical barrels remains paramount, Bahlil noted that final pricing terms dictate whether an import channel is viable for the state treasury.

"Physical availability is crucial, but it must also be economical," the former investment minister added. "The objective is to avoid overburdening our state budget (APBN) and to avoid burdening our people with the cost of whatever we purchase."

To achieve this, technical teams are comparing competitive offerings across diverse regional suppliers before signing procurement contracts. Geographic origin will not serve as the decisive criteria, provided cargo volumes and competitive pricing can be guaranteed.

"We are looking for the best option. Whichever is cheaper, that is what we will buy," Bahlil stressed.

Assessing Russian Inflows

Addressing inbound shipments of crude oil from Russia, Bahlil confirmed that existing volumes allocated for domestic processing remain dependable.

"I can confirm that the availability of our crude supplies is secure, including portions coming from Russia," Bahlil noted on Thursday. "As for the other technical details regarding Russian supplies, I will explain them at the appropriate time."

The procurement push aligns with broader efforts across the cabinet to maintain downstream energy stability, ensuring national refineries and distribution depots hold sufficient feedstock reserves without putting undue pressure on the state's fiscal deficit.