Purchasing discounted crude could help the inflation-hit nation, Jakarta says

Indonesia is considering joining India and China in buying discounted Russian oil to offset increased pressure from rising energy costs, the Financial Times reported on Monday.

“We always monitor all of the options. If there is the country (and) they give a better price, of course,” President Joko Widodo said in an interview with the FT when he was asked whether Indonesia would buy oil from Russia.

Indonesia has reportedly been offered Russian crude at a 30% discount, with state-owned oil company Pertamina saying it was reviewing the risks involved. The potential purchases of Russian crude at prices above a cap agreed by G7 countries could subject Jakarta to US sanctions.

The Indonesian government has been facing widespread discontent over soaring prices for fuel and other staples. The annual inflation rate in Southeast Asia’s top economy hit 4.69% in August, above the central bank's target range of 2%-4%.

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