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  4. Indonesia will consider 'all of the options' as steep Russian oil discount and G7 price cap loom

Indonesia will consider 'all of the options' as steep Russian oil discount and G7 price cap loom

Brian Evans   

Indonesia will consider 'all of the options' as steep Russian oil discount and G7 price cap loom
Stock Market1 min read
  • Indonesia isn't ruling out importing Russian oil, President Joko Widodo told the Financial Times.
  • "We always monitor all of the options. If there is the country [and] they give a better price, of course," he said.

Indonesia isn't ruling out importing Russian oil as Moscow offers a steep discount while the G7 pushes a price cap on Russian crude.

"We always monitor all of the options. If there is the country [and] they give a better price, of course," President Joko Widodo told the Financial Times.

He added that "there is a duty for [the] government to find various sources to meet the energy needs of their people."

Southeast Asia's largest economy has not traditionally been a big buyer of Russian oil. But Indonesia has seen some fuel cost jump 30% in the last month alone.

Meanwhile, Russia is offering its oil at a 30% discount to the international rate, Indonesia's tourism minister has said.

Indonesia could potentially join other Asian countries including China and India which have shown a willingness to purchase Russian crude while Western countries shun business ties with Moscow due to its invasion of Ukraine.

At the same time, Europe is imposing a partial embargo on Russian oil by the end of the year, and the G7 is pushing for a cap on Russian oil prices that will keep supplies flowing while also limiting the Kremlin's revenue.

Indonesia will have to walk a political tightrope as it is set to host the next G20 meeting this November in Bali. Widodo has invited both Ukrainian President Volodymyr Zelenskyy and Russia's Vladimir Putin to attend.


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