Govt prepares additional rules for Russian oil imports

Banten (ANTARA) - The Ministry of Energy and Mineral Resources is preparing additional regulations and import schemes for planned crude oil imports from Russia.

Director General of Oil and Gas Laode Sulaeman said Russian crude imports require a special regulatory and financing arrangement.

"The Russian oil imports will also be supported by additional regulations," he told reporters in Tangerang, Banten, on Wednesday.

He said state oil and gas company Pertamina relies on global bond financing and therefore must avoid actions that could breach bond-related obligations.

Pertamina's obligations to global bond investors have prompted the ministry to seek an appropriate scheme for importing Russian crude.

"Pertamina operates using global bonds. It must avoid actions that could create problems related to those bonds. That is why the import scheme is still being processed," Laode said.

On April 24, Deputy Energy and Mineral Resources Minister Yuliot said the government was preparing regulations and a legal framework for the planned import of 150 million barrels of Russian crude oil.

The government is considering two import options: direct procurement through a state-owned enterprise or imports through a public service agency (BLU).

Yuliot said direct imports by a state-owned enterprise (SOE) would carry specific implications because many SOEs already maintain long-term supply contracts.

He said imports through a BLU could provide greater flexibility, including in financing arrangements.

The planned imports are part of Indonesia's commitment to gradually import 150 million barrels of Russian crude through the end of 2026 following President Prabowo Subianto's visit to Russia.