Indonesia seeks new crude suppliers after losing 25% of import sources

Indonesia replaces disrupted oil supplies

Indonesia is searching for new oil suppliers after losing 25% of its import sources because of the conflict in the Middle East, according to the Ministry of Energy and Mineral Resources. Director General of Oil and Gas Laode Sulaeman said the government must secure replacement cargoes to preserve national stocks. The disruption has forced officials to approach countries holding surplus oil rather than rely on Indonesia’s established procurement process.

Katadata reported that Pertamina previously used tenders to obtain imported supply, but the current market has attracted no interested bidders. Indonesia has therefore shifted to a direct “hunting” method: identifying countries with excess stocks and negotiating purchases. Laode acknowledged that these barrels could cost more than oil acquired under ordinary procurement arrangements. The change places security of supply ahead of obtaining the lowest tender price.

Alternative suppliers span four continents

The immediate disruption follows turmoil affecting Middle Eastern supply and the Strait of Hormuz. Energy Minister Bahlil Lahadalia has identified the United States, Brazil, Nigeria and Australia among the alternatives under consideration. Republika previously reported that the government had also approached Angola and Russia, and that Indonesia had secured Russian crude supply for one year.

The government’s diversification plans include a substantial expansion of purchases from the United States. Katadata reported that Indonesia currently sources about 4% of its domestic crude requirement from the US and plans to raise that share to 40%. Bahlil had also signaled a planned purchase of US petroleum products worth US$15 billion. Imports from the Middle East, Africa and Southeast Asia would be reduced as the US allocation increases, although Nigeria and Angola remain important suppliers outside the Middle East.

Supplier data reported by detikFinance illustrate the existing mix. Between April 2025 and March 2026, Nigeria supplied 34.07 million barrels, or 25% of Indonesia’s crude imports. Angola provided 28.50 million barrels, equivalent to about 21%, while Saudi Arabia supplied 28.50 million barrels, or about 19%. Other countries accounted for 47.40 million barrels, approximately 35%. These figures show that Indonesia was already diversified by country, but the loss of available sources still creates an urgent procurement gap.

Higher costs meet a large domestic deficit

Indonesia’s exposure is amplified by the difference between consumption and domestic production. Republika put national oil consumption at about 1.6 million barrels per day and domestic lifting at around 605,000 barrels per day, leaving the country dependent on roughly 1 million barrels per day of imports. Replacement cargoes must also be compatible with Indonesian refineries and arrive through viable shipping routes, making the existence of surplus supply only one part of the procurement decision.

The government says subsidized diesel and gasoline prices will remain unchanged because these fuels are major inputs for fishers and farmers. That commitment means any increase in crude acquisition and logistics costs may not be passed directly to those consumers. For Pertamina and the state, the central trade-off is therefore between paying a premium for immediately available barrels and risking tighter refinery feedstock and fuel inventories. Diversification reduces dependence on a disrupted corridor, but direct negotiation in a constrained market may weaken Indonesia’s bargaining position until regular tender participation returns.