When Luhut is Upset with Russia, What’s Up?

Jakarta, CNBC Indonesia – The Coordinating Minister for Maritime Affairs and Investment (Menko Marves) Luhut Binsar Pandjaitan expressed his frustration with the planned purchase of crude oil from Russia. The reason is, until now this plan has never been realized.

He said this during a meeting with the Minister of Economy of Russia. Luhut was annoyed because his party had also gone to Russia to discuss this.

However, after five months of waiting, the prospect of buying crude oil from Russia never happened.

“I challenge Russia, where is your oil? Now that the oil has gone down, you can offer it, we don’t need you anymore, he said ok, we’ll fix it. Did you offer insurance from Russia, you can even make it simple from Russia, “said Luhut in at the Saratoga Investment Summit 2023, Thursday (26/1/2023).

PT Pertamina (Persero) some time ago said that it was still reviewing plans to purchase crude oil from Russia. Remember, there are still various kinds of considerations that must be decided carefully.

President Director of PT Kilang Pertamina Internasional, Subholding Refinery & Petrochemical Pertamina, Taufik Aditiyawarman, assessed that the review of the purchase of oil from Russia was carried out by considering many things, starting from political, economic, and company business calculations.

“There is no confirmation yet. Because there must be political risk, economic risk, under company risk. We still have global bonds for the Pertamina Group, so it’s a consideration,” said Taufik when met in Nusa Dua, Bali, Thursday (24/11/2022 ).

In addition, Taufik has not been able to disclose in detail regarding the plan to purchase this crude oil from Russia, both regarding the price range and the required volume. This is because the oil must be tested first at the refinery.

“If oil is imported, on average we have to trial it first at the refinery. If the product has already been used, is it suitable at the refinery, what is the price, so there is an economical price. There are 1-2 products that are suitable and not suitable,” he said.

[Gambas:Video CNBC]