JAKARTA: Russia has agreed to provide Indonesia with as much as 150 million barrels of oil following Indonesian President Prabowo Subianto’s recent visit to Moscow, particular envoy for vitality and setting Hashim Djojohadikusumo stated on Thursday (Apr 23).
Prabowo met Russian President Vladimir Putin on the Kremlin final week, the place they mentioned strengthening strategic partnerships, together with within the vitality sector, cupboard secretary Teddy Indra Wijaya stated in a press release.
Like many international locations, Indonesia has come underneath stress from hovering world oil costs due to the struggle within the Center East and has been scrambling to safe different suppliers.
About 20 to 25 per cent of Indonesia’s crude imports come from the Center East and move by the very important Strait of Hormuz.
“Indonesia has now secured a dedication from the Russian authorities. We will retailer 150 million barrels in Indonesia to handle financial volatility points,” the Antara state information company quoted Hashim, who’s Prabowo’s brother, as saying.
Russia has agreed to provide 100 million barrels of oil to Indonesia at a particular value, he stated, and one other 50 million barrels if wanted later.
Indonesia, Southeast Asia’s largest economic system the place gasoline is closely subsidised, is an oil producer however however a internet importer.
The archipelagic nation consumes some 1.6 million barrels of gasoline per day, and produces about 600,000 barrels a day, in line with vitality minister Bahlil Lahadalia.
The federal government announced fuel rationing last month and mandated a work-from-home policy of someday every week for civil servants to preserve vitality shares.
It has vowed to not enhance costs of subsidised gasoline this 12 months.
