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Indonesia's Oil Dilemma: Navigating Russian Crude Amid Sanctions

2/16/2026

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Story summary
  • Analysts say Indonesia could become a market for discounted Russian crude as Western pressure on buyers increases.
  • This shift could pose diplomatic risks for Jakarta amid sensitive trade negotiations with the United States.
  • Recent reports indicate Russian crude has been transferred to Indonesian ports, despite denials from Indonesian authorities and Pertamina.
  • The European Union is considering extending sanctions to Indonesian ports that have handled Russian oil.
  • Indonesia's position as a growing net oil importer complicates its relations with the United States and its allies.