Indonesia receives UAE offer for up to 30 million barrels of crude
SKK Migas says the proposed supply would require no upfront payment or working capital, while shipping costs would also be covered.
Indonesia has been offered a crude oil shipment arrangement by the United Arab Emirates covering up to 30 million barrels, according to upstream oil and gas regulator SKK Migas. The proposal would include shipping and would not require Indonesia to provide upfront funds or working capital.
The regulator’s head, Djoko Siswanto, outlined the offer following October 27 talks in Jakarta involving Energy and Mineral Resources Minister Bahlil Lahadalia and Abdulla Salem Al Dhaheri, the UAE ambassador to Indonesia. Siswanto did not disclose how prices would be set, when deliveries would take place or how repayment would work.
Indonesia is pursuing a wider range of import suppliers to strengthen energy security. Lahadalia has visits scheduled to China and India for negotiations on supply agreements, and state-owned energy company PT Pertamina has received instructions to seek long-term contracts.
Presidential Regulation No. 107 of 2026 provides for direct government-to-government and government-to-business purchasing arrangements covering crude, refined fuels and liquefied petroleum gas (LPG). The framework is intended to maintain stable domestic supplies given Indonesia’s reliance on imported crude and LPG.
Under that system, negotiations with producing countries are handled by the central government. A designated Public Service Agency (BLU) then carries out purchases following an agreement and delivers supplies directly to Pertamina.
The Jakarta meeting also reviewed progress towards a final investment decision for offshore natural gas exploration in the Andaman Block near Aceh.
