Indonesia may consider importing oil from Russia following its entry into the Brics bloc, according to senior officials, but analysts say Jakarta must carefully weigh the economic benefits of discounted crude against the geopolitical risk of pushback from the West.
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Indonesia’s Minister of Energy and Mineral Resources Bahlil Lahadalia said on Friday that “an opportunity to acquire oil from Russia emerged after we joined Brics”.
“As long as it complies with regulations and presents no issues, why not?” the minister said during a press conference.
His remarks echoed a statement a day earlier by Luhut Binsar Pandjaitan, chair of Indonesia’s National Economic Council, who said: “As long as it benefits the Republic of Indonesia, we are open to discussing it. If this step allows us to purchase oil at US$20 or US$22 cheaper, why not?”
Since its 2022 invasion of Ukraine, Russia has faced economic isolation due to Western sanctions, forcing it to sell crude oil at a discount of US$3 to US$4 per barrel below global benchmarks.
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China, India and Turkey have already taken advantage, buying low-cost Russian energy and largely avoiding Western criticism.