Sunday, December 3, 2023

Russia’s offers cheap oil to Indonesia sparks pro and contra issues

Reading Time: < 1 minute
Correspondent IBP

Journalist

Editor

Interview

Tourism and Creative Economy Minister Sandiaga Salahuddin Uno said that Russia offered Indonesia 30 percent lower oil prices than the international market and that India had previously purchased the oil from Russia. Sandiaga said President Jokowi wanted to accept the offer but several ministers refused because purchasing Russian oil would result in a U.S. embargo.

Energy Watch executive director Mamit Setiawan doubts that Indonesia will be prepared to face the risks if it decides to import crude oil from Russia, an idea recently floated by Tourism and Creative Economy Minister Sandiaga Uno.

According to Mamit, such a purchase would allow Indonesia to obtain crude oil at a 30% discount, easing the country’s financial burden and accelerating the production of affordable fuel. However, he believes that if talks of importing crude oil materialize, the government must ensure that Pertamina’s refineries can process Russian oil.

Center of Reform on Economics (CORE) senior economist Pieter Abdullah Redjalam said on Tuesday he supports Indonesia’s plan to import oil from Russia from an economic standpoint because the price is 30 percent lower than the international market and Indonesia itself is an importer country.

However, he said Indonesia must consider other factors, particularly in relation to the United States. He said the United States could seek ways to embargo Indonesia if it truly imports crude oil from Russia.

Correspondent IBP

Journalist

 

Editor

 

Interview

SUBSCRIBE NOW
We will provide you with an invoice for your reimbursable expenses.

Free

New to Indonesian market? Read our free articles before subscribing to the premium plan. If you already run your business in Indonesia, make sure to subscribe to the premium subscription so you won’t miss any intelligence & business opportunities.

Premium

$550 USD/Year

or

$45 USD/Month

Cancelation: you can cancel your subscription at any time, by sending us an email inquiry@ibp-media.com

Add keywords to your market watch and receive notification:
Schedule a free consultation with us:

We’ll contact you for confirmation.

FURTHER READING

The government is advised to exercise caution in developing nuclear power plants (NPPs) as their development poses various risks that require careful consideration.
Presidential and vice-presidential candidate Prabowo Subianto and Gibran Rakabuming Raka have outlined their vision to construct 10 innovation cities across Indonesia if they emerge victorious in the 2024 Presidential Election.
The government plans to encourage larger exports to non-traditional markets such as India, Pakistan, and Mexico. Indonesia’s exports have traditionally been dominated by China, the United States, and European countries.¬†
The Corruption Eradication Commission (KPK) is currently investigating three cases of alleged corruption in the Ministry of Agriculture (Kementan), involving the procurement of cattle, horticulture, and extortion.
PT PGN Tbk, a Subholding Gas under Pertamina, is committed to enhancing its responsiveness to customer complaints by implementing various initiatives.
The official establishment of the Comprehensive Investment and Policy Plan (CIPP) within the Just Energy Transition Partnership (JETP) marked a significant milestone in Indonesia’s move towards achieving net-zero emission.