Antara News·Indonesia·Wednesday, October 28, 2026 at 10:06 AM UTC

UAE to supply Indonesia with up to 30 million barrels of crude oil

Translate

Shofi Ayudiana, Uyu Liman

Jakarta (ANTARA) - The United Arab Emirates (UAE) offers to supply up to 30 million barrels of crude oil to Indonesia under favorable commercial terms, Indonesia’s upstream oil and gas regulator SKK Migas stated.

Head of SKK Migas Djoko Siswanto said the arrangement was discussed during a meeting between Indonesian Minister of Energy and Mineral Resources Bahlil Lahadalia and UAE Ambassador to Indonesia Abdulla Salem Al Dhaheri in Jakarta on Tuesday (October 27).

"The UAE Ambassador stated that they would deliver up to 30 million barrels of crude oil to Indonesia without upfront costs, without working capital requirements, and with shipping costs covered. This is welcome news for us," Siswanto remarked.

However, he did not elaborate on the specific pricing mechanisms, delivery timelines, or repayment terms governing the proposed supply.

Beyond crude oil procurement, the bilateral discussions touched upon the progress toward a final investment decision (FID) for an offshore natural gas exploration project in the Andaman Block off the coast of Aceh.

The proposed UAE supply comes as Indonesia steps up efforts to bolster national energy security by diversifying import channels from various countries.

Minister Lahadalia is scheduled to travel to China and India to negotiate supply agreements, while state-owned oil and gas firm PT Pertamina has been instructed to secure long-term contracts.

The move follows recent regulatory shifts under Presidential Regulation No. 107 of 2026, which established a new legal framework for direct government-to-government (G2G) and government-to-business (G2B) procurement of crude oil, refined fuels, and liquefied petroleum gas (LPG).

Under this mechanism, the central government conducts high-level bilateral negotiations with energy-producing nations. Once agreed, a designated Public Service Agency (BLU) executes the procurement and channels supplies directly to Pertamina.

The government introduced the framework to secure stable domestic energy supplies, addressing Indonesia’s reliance on crude oil and LPG imports.

View the original on Antara News →

KioskNews shows a cleaned-up reading view extracted from the publisher’s page — the original always lives on their site, not ours.