Indonesia Secures Russian Oil and LPG to Boost Energy Security

Following a high-level meeting at the Kremlin on April 13, 2026, between President Vladimir Putin and President Prabowo Subianto, Indonesia agreed to purchase crude oil and liquefied petroleum gas (LPG) from Russia. The agreement, finalized during subsequent talks between Energy Minister Bahlil Lahadalia and Russian Energy Minister Sergey Tsivilev, aims to address a domestic crude deficit of approximately one million barrels per day. Crude oil shipments are expected to begin in April 2026.

Indonesia is seeking to diversify its energy portfolio to mitigate volatility caused by missile strikes on Saudi Aramco facilities and a U.S. blockade of the Strait of Hormuz. The government intends to reduce its dependence on the Middle East for crude and the United States for LPG, the latter of which previously supplied up to 75% of Indonesian imports. Beyond fuel, the two nations are exploring cooperation in nuclear power plants, mineral sectors, and energy storage infrastructure.

President Prabowo Subianto has directed that subsidized fuel prices remain unchanged through the end of 2026, citing manageable fiscal conditions and stable supplies. Meanwhile, the broader region continues to navigate U.S. sanctions. India announced it will continue importing Russian energy resources despite U.S. Treasury Secretary Scott Bessent's confirmation that general licenses for Russian and Iranian oil will not be renewed.