The new BRICS member Indonesia is planning to start procuring oil from Russia as early as April, as announced by the Minister of Energy and Mineral Resources, Bahlil Lahadalia, and reported by ANTARA. Lahadalia noted that Indonesia must expand its needs for gas and energy, cooperating with different countries.
BRICS member Indonesia currently produces 600,000 barrels of oil per day, and consumption in the country has reached 1.6 million barrels each day, leading to the need to start procuring from Russia to meet the demand. Every year, the country needs an additional 300 million barrels of oil to fulfil its energy requirements.
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Since the domestic output is much lower than the demand, Indonesia is considering buying oil from BRICS member Russia. Russian President Vladimir Putin held a meeting with Indonesian President Prabowo Subianto in Moscow at the Kremlin. The two laid out policy plans, opening up new avenues for oil and gas trade. Putin also welcomed the decision to strengthen trade between the two nations.
“Our countries cooperate closely and interact well in various international forums. Indonesia is now a member of BRICS, and this opens up new opportunities to develop our cooperation,” said Putin. Russia could soon begin shipping oil containers to BRICS member Indonesia to meet the growing demand.
“As a strategic partner, we are ready to cooperate, particularly in the supply of oil and gas, storage, and electricity, specifically nuclear power stations,” said Sergey Tsivilev, the Russian Minister of Energy. Russia is already supplying crude oil to BRICS members China and India. It is now the biggest supplier of energy, and Indonesia could join the bandwagon.
BRICS Controls 45% of the Global Oil Supply, Russia & Indonesia Benefit
The BRICS alliance roughly controls over 45% of the global oil supply and is a key player in the industry. Producers like Russia and Iran top the charts with extensive supply and output. If Saudi Arabia decides to join the alliance, the numbers would shoot up further. BRICS members Russia and Indonesia could soon finalize the oil deal before the month’s end.