Southeast Asia

Indonesia May Buy Cheap Russian Oil: Jokowi – FT


Indonesian President Joko Widodo is considering buying Russian oil to reduce the pressure of rising energy costs, the Financial Times reported on Monday.

“We always monitor all of the options. If there is the country (and) they give a better price, of course,” Widodo said in an interview with the Financial Times when he was asked whether Indonesia would buy oil from Russia.

Earlier this month, Widodo hiked subsidised fuel prices by 30% and said that the price hike was his “last option” due to fiscal pressures.

Members of Indonesian labour groups protest outside Parliament in Jakarta over raised subsidised fuel prices, on Sept 6, 2022 (Ajeng Dinar Ulfiana, Reuters).

The move sparked protests across the nation of 270 million people, with thousands of protesters massing in Jakarta and other big cities last week to oppose the government’s move to cut its fuel subsidies.

But any move to purchase Russian crude at prices above the cap agreed by G7 countries could subject Indonesia to US sanctions.

In August, Tourism Minister Sandiaga Uno said that Indonesia had been offered Russian crude at a 30% discount. Following this, the country’s state-owned oil company, Pertamina, said it was reviewing the risks of buying Russian oil.

Southeast Asia’s largest economy, Indonesia posted an annual inflation rate of 4.7% in August, above the central bank’s target range of 2%-4% for a third straight month, due to high food prices.


  • Reuters with additional editing by Jim Pollard





Indonesia’s Vale, China Firm Sign $2bn Nickel Plant Deal


Indonesia Ratifies RCEP Trade Deal, Pact With South Korea


Indonesia Hails Deeper Trade Cooperation After China Visit


Indonesia’s Jokowi, Tesla’s Musk Hold Talks on Nickel Funding


Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

Recent Posts

South Korea to Meet Striking Truckers as Supply Chains Suffer

The strike has seen container traffic at ports drop 19% and the country’s cement industry…

17 hours ago

Shanghai Covid Protests Break Out as Lockdowns Fury Builds

The Shanghai show of dissent comes after a deadly fire in Urumqi, the capital of China's…

18 hours ago

China Industrial Profits Slump as Economy Wilts Under Covid

Some analysts believe China's GDP could now contract this quarter and have cut their 2023…

19 hours ago

India Rocket Firm Has High Hopes Despite Low-Cost Pledge

Skyroot Aerospace says it expects to be able to launch its first satellite next year…

2 days ago

Huawei, ZTE Equipment Sales Banned by US Over Security Risks

The move is latest step in Washington's crackdown on Chinese tech giants amid fears the…

2 days ago

Covid Protests Erupt in China’s Xinjiang After Fatal Blaze

Beijing has vowed to continue with its controversial zero-Covid policy despite growing unrest and the…

2 days ago