Indonesia Seeks Energy Deal with Russia

(MENAFN) Indonesia is actively pursuing energy cooperation with Russia, with plans on the table to jointly develop oil refineries and storage infrastructure, Minister of Energy and Mineral Resources Bahlil Lahadalia announced Friday — a move that signals Jakarta's determination to fortify its energy security and deepen its downstream oil and gas capabilities.

The initiative sits at the heart of the government's wider push to expand domestic refining capacity and pare back the nation's dependence on imported fuel — a strategic vulnerability that has long weighed on Indonesia's energy policy agenda.

Lahadalia stressed that the inclusion of storage facilities alongside refinery development was a deliberate and calculated choice, designed to reinforce national energy reserves and insulate the country from the volatility now defining global oil markets.

The Minister further signaled that Jakarta maintains an open-door posture toward foreign capital, provided investment proposals align with the country's sovereign interests — particularly within the energy sector, which the government has identified as a national priority.

"The potential partnership with Russia reflects Indonesia's strategy to diversify energy partners while accelerating infrastructure development to meet growing domestic demand," he said.

The overture to Moscow comes as emerging economies across Southeast Asia increasingly seek to hedge against supply disruptions and price shocks by locking in bilateral energy arrangements, reducing exposure to the fluctuations of international commodity markets.

No timeline for the proposed cooperation has been formally announced, and negotiations are understood to be at an exploratory stage.

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