Jakarta. The Indonesian government chooses not to worry whether its fresh Russian crude deal would harm its ties with the United States, citing Jakarta's good terms with both countries.
Jakarta recently clinched an agreement with Russia on the supply of crude oil and liquefied petroleum gas (LPG) following high-level Moscow talks. The agreement came amid souring Moscow-Washington relations due to Russia’s so-called “special military operation” in Ukraine, with the US slapping sanctions on Russian oil giants for funding the Kremlin's war against Kyiv.
“We have a very mature relationship with the US. The same goes for our ties with Russia. There is still a huge room for cooperation. So it [the Russian deal] will not affect [US relations],†Foreign Ministry spokesman Vahd Nabyl A Mulachela told a press briefing in Jakarta on Thursday.
Under a tariff deal struck with the Donald Trump administration in February, Indonesia had pledged to facilitate the imports of $4.5 billion worth of US crude and $3.5 billion of LPG. Jakarta sees nothing wrong with buying Russian energy despite the multi-billion-dollar US pledge, alluding to diversification attempts amid the global fuel crunch.Â
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“This is to diversify sources to build the national energy security. Our national interests are a priority,†Nabyl said.
Energy Minister Bahlil Lahadalia remained tight-lipped on the details when asked about the Russian crude and LPG in a separate conference. He revealed that the agreement had prevented him from spilling the volume.Â
“Our ‘free and active' foreign policy extends to the economic sphere. We are free to buy [energy] anywhere as long as we remain committed to the deals that we have made, including the one with the US,†Bahlil said.
The Iran war has caused many countries — including Indonesia — to scrounge around for fuel. Iran has shut down the Strait of Hormuz, which provides passage for a quarter of the global seaborne crude trade, in retaliation for the US-Israeli strikes that began on February 28. The closure has caused two Indonesian tankers to remain trapped for almost two months. Their fate still hangs in the balance after Trump threatened a Hormuz blockade.
Nabyl said Indonesia had earned a “positive signal†from Iran for a Hormuz passage. However, Indonesia has to make sure that everything is ready from a “technical standpoint, including insuranceâ€, for the vessels to safely pass through the narrow waterway.Â
Negotiations remain underway to extend the current two-week ceasefire beyond its expiry date, which falls on April 22. The global crude benchmark Brent reached $95 per barrel on Thursday after continuously breaking the $100-barrier throughout the clashes.
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