Indonesia’s Crude Oil Imports: 20-25% Flow Through the Strait of Hormuz from the Middle East

Indonesia has secured a commitment from Russia to supply up to 150 million barrels of oil amid global supply disruptions caused by the war in the Middle East, according to a statement by Hashim Djojohadikusumo, special envoy for energy and environment and brother of President Prabowo Subianto.

The announcement followed President Prabowo’s recent visit to Moscow, where he met with Russian President Vladimir Putin to discuss strengthening strategic partnerships, including in the energy sector. Cabinet Secretary Teddy Indra Wijaya confirmed the discussions in an official statement.

Russia has agreed to supply 100 million barrels of oil to Indonesia at a special price, with an additional 50 million barrels available if needed later. The oil will be stored in Indonesia to address economic volatility caused by fluctuating global prices.

Indonesia, Southeast Asia’s largest economy, remains a net importer of oil despite domestic production. The country consumes approximately 1.6 million barrels of oil per day while producing only 600,000 barrels daily, according to Energy and Mineral Resources Minister Bahlil Lahadalia.

To conserve energy stocks, the Indonesian government has implemented fuel rationing and mandated a one-day-per-week work-from-home policy for civil servants. It has also pledged not to increase the prices of subsidized fuel this year.

Around 20 to 25 percent of Indonesia’s crude oil imports normally come from the Middle East and transit through the Strait of Hormuz, a critical global chokepoint vulnerable to disruption due to the ongoing conflict involving Israel, the United States and Iran.