Russia Dares Jakarta to Defy Trump’s Tariff Threat and Buy Its Oil
Source: Jakarta Globe | Original Published At: 2025-10-30 13:06:00 UTC
Key Points
- Russia offers oil and gas to Indonesia but questions Jakarta's willingness due to U.S. sanctions.
- Indonesia joined BRICS but has not finalized Russian energy imports despite initial openness.
- U.S. imposes sanctions on Russian oil firms and penalizes India for buying Russian crude.
- Indonesia prioritizes U.S. energy purchases under a trade agreement reducing tariffs on Indonesian goods.
- Negotiations between Indonesia and U.S. on tariffs for palm oil, cocoa, and rubber continue.
Jakarta. Russia has reiterated its offer to supply oil to Indonesia, but its envoy in Jakarta questioned whether the Southeast Asian nation is “brave enough” to proceed without fear of punitive measures from US President Donald Trump.
Russian Ambassador Sergei Tolchenov said Moscow’s proposal to export oil and gas remains on the table, yet Indonesia must weigh the potential consequences on its ongoing trade negotiations with Washington.
“We are ready to supply oil and gas to Indonesia,” Tolchenov said on Wednesday. “But tell us who in Indonesia is brave enough to import oil and gas without hearing from President Trump that he will impose more tariffs on those who buy Russian energy.”
Indonesia joined the Russia-backed BRICS bloc earlier this year, after which Energy Minister Bahlil Lahadalia said the country was open to purchasing Russian oil. Presidential adviser Luhut Binsar Pandjaitan also cited affordability as a key incentive. However, months later, the plan has yet to materialize.
The comments came shortly after Washington imposed fresh sanctions on Rosneft and Lukoil, Russia’s two largest oil firms, in response to stalled talks over the war in Ukraine. The Trump administration has also penalized India, slapping a 50 percent import tariff for continuing to buy Russian crude.
At home, Energy and Mineral Resources Ministry Director-General Laode Sulaeman confirmed that Indonesia has not signed any import contracts for Russian crude or liquefied petroleum gas (LPG). He said Jakarta currently prioritizes energy purchases from the United States before seeking alternative suppliers.
Under a recent trade agreement, Trump reduced tariffs on Indonesian goods from 32 percent to 19 percent, effective August 7. In return, Indonesia pledged to buy around $15 billion worth of American energy products, including LPG, crude oil, and gasoline.
Jakarta is also lobbying Washington to lift tariffs on palm oil, cocoa, and rubber — commodities the US does not produce domestically.
Coordinating Minister for Economic Affairs Airlangga Hartarto said negotiations are expected to resume next month.
“We have completed almost every part of the agreement, but we still need to finalize the legal drafting,” Airlangga told reporters on Wednesday evening.