Indonesia Mulls Buying Russian Oil as Prices Spike

JAKARTA, KOMPAS.com – Indonesia’s President Joko “Jokowi” Widodo is considering joining India and China in buying Russian oil to offset increasing pressure from rising energy costs.

“We always consider all options. If there are countries (and) they give better prices, then of course,” Jokowi said in an interview with the Financial Times as quoted by State News Antara on Monday, Sept. 12.

The statement came as a response to a question on whether Indonesia would purchase oil from Russia.

Also read: Investors Pull Out of Upstream Oil, Gas Activity in Indonesia

Earlier this month, Jokowi raised the price of subsidized fuel by 30 percent and said a price hike was his “last option” due to fiscal pressure, sparking protests across the nation of 270 million people.

Any attempt to buy Russian crude oil at a price above the limit agreed by the G7 countries could subject Indonesia to US sanctions.

Also read: Indonesia Achieves Oil and Gas Production Target in First Semester

In August, Tourism Minister Sandiaga Uno said that Indonesia had been offered Russian crude oil at a 30-percent discount. The state-owned oil company Pertamina then said that it was reviewing the possible risks of buying Russian oil.

Indonesia, Southeast Asia’s largest economy, recorded an annual inflation rate of 4.69 percent in August, above the central bank’s target range of 2-4 percent for the third straight month due to high food prices.

Source: State News Antara