Indonesia to continue Russian oil imports amid US tariff risks

Indonesia plans to continue importing crude oil from Russia to maintain domestic energy security and meet national demand. This decision comes despite the risk of potential United States tariffs. Under the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, signed by President Donald Trump, the US may impose tariffs of up to 100% on countries that are major purchasers of Russian energy or assist in evading sanctions. While the rule does not explicitly target Indonesia, the government maintains that oil procurement will be based on supply certainty, economic factors, and regulatory compliance.

Simultaneously, Indonesia faces fiscal pressure due to rising global crude oil prices, which have exceeded $105 per barrel. As a net oil importer, the country is experiencing increased pressure on its state budget, with energy subsidies and compensation reaching Rp331.4 trillion, a 52.1% year-on-year increase. This volatility has prompted discussions regarding the acceleration of renewable energy (EBT) and biofuel programs, such as B35/B40, to mitigate the economic impact of fossil fuel price fluctuations.