JakartaPost-July 24, 2024
Government officials have denied plans for Indonesia to buy Russian oil but do not rule out such purchases in the future. News agency Reuters reported on Tuesday that state-owned oil and gas company Pertamina had added Russian oil grades to its tender lists for September restocking, citing three anonymous traders. Coordinating Economic Minister Airlangga Hartarto told reporters at his office on Tuesday that there was “no plan yet” to import oil from Russia. Likewise, Trade Minister Zulkifli Hasan told The Jakarta Post “not yet” when asked about such a plan on Tuesday, suggesting that no decision had been made on the matter but not ruling out future purchases. Earlier this month, Zulkifli spoke about the matter before Commission VI of the House of Representatives, which oversees trade, among other matters. The minister said Indonesia would not breach any “international rules” should Jakarta greenlight purchases of Russian oil. “Why don’t we want [to buy Russian oil]? [Because] we’re afraid. There’s no room for being afraid in trade. How can one conduct trade if one is afraid?” He said on July 8. Zulkifli said buying crude from Russia was an “opportunity”, given that Indonesia could score a bargain because of the price cap imposed on Russian oil by the Group of Seven (G7) member states, Australia and the European Union. The measure was taken as a sanction against Moscow over its attack on Ukraine in 2022 with the intention to reduce Russian state revenue and hence Moscow’s ability to finance the war. The Russian Embassy in Jakarta noted “the news about Pertamina including Russian Urals and Sokol oil in its September tender lists” but said “the plans of Pertamina to buy Russian oil under the so-called ‘price cap regulation’ seem to be unduly high-flying.” The statement sent to the Post on Wednesday added: “As far as we can see, the Indonesian company is trying to maneuver between [the] benefits from potential cooperation with Russian exporters and complying with the illegal sanction regime imposed by the West.” Read more at: https://www.thejakartapost.com/business/2024/07/24/govt-denies-buying-russian-oil-but-leaves-door-open.html.
