The Indonesian Ministry of Energy and Mineral Resources (ESDM) has addressed the European Union’s inclusion of the Karimun Oil Terminal in its latest sanctions package. Laode Sulaeman, Director General of Oil and Gas, emphasized that such geopolitical pressures are not new to Indonesia, asserting the nation’s commitment to its long-standing foreign policy of independence and active non-alignment.
The EU recently adopted its 20th sanctions package targeting Russia, covering sectors ranging from finance and trade to energy. The inclusion of the Karimun Oil Terminal as a third-party port is linked to allegations of facilitating Russia’s “shadow fleet” and efforts to circumvent the price cap on Russian oil. “We maintain a policy of independent and active diplomacy. Our partnerships are driven by national interests and are not limited to any single country,” Laode stated during an address at the Ministry of ESDM on Monday (May 4).
According to the European Commission, the latest sanctions aim to intensify economic pressure on Moscow to discourage its ongoing aggression in Ukraine, while simultaneously protecting EU energy security. The broader sanctions package includes 36 Russian energy entities and adds 46 vessels to the existing shadow fleet list—bringing the total number of flagged vessels facing port access bans and service restrictions to 632.
Despite these developments, the Indonesian government remains focused on its domestic energy infrastructure. Laode noted that there are ongoing plans to expand storage capacity in Karimun, Riau, to bolster the nation’s strategic energy reserves. “There is still ample space to expand storage facilities in that region,” he added.
Regarding Indonesia’s ongoing energy cooperation with Russia, which includes imports of crude oil and LPG alongside various investment projects, the Ministry maintains that operations continue as planned. “There are no obstacles,” Laode affirmed.
Clarification from PT Oil Terminal Karimun
In response to the international scrutiny, PT Oil Terminal Karimun (OTK) has issued a formal clarification, stating that neither the company nor its facility has been designated as a sanctioned entity. Management explains that the reference to “Karimun Oil Terminal, Indonesia” in the EU regulation refers specifically to a geographical location or infrastructure listing in the annex, rather than a punitive measure against the company itself.
The company emphasized that “Karimun Oil Terminal” is not the legal name of the entity, nor does the regulation constitute a formal designation of the company as a blocked body. “OTK stresses that this reference is not the registered legal name of our firm, nor should it be interpreted as an official sanction against PT Oil Terminal Karimun as a legal entity,” the company stated on Monday (April 27).
Furthermore, the firm categorically denied any involvement in activities related to the evasion of sanctions, shadow fleet operations, deceptive shipping practices, or the falsification of cargo documentation.
Summary
The Indonesian Ministry of Energy and Mineral Resources (ESDM) has clarified that the inclusion of the Karimun Oil Terminal in the European Union’s latest sanctions package does not disrupt national policy or ongoing operations. Officials emphasized that Indonesia maintains an independent, active foreign policy driven by national interests rather than geopolitical pressures. The government remains committed to expanding storage capacity in the Riau region to strengthen domestic energy reserves and continues to pursue energy cooperation projects as planned.
PT Oil Terminal Karimun (OTK) has formally denied any involvement in activities related to the Russian “shadow fleet” or sanctions evasion. The company clarified that the EU’s listing refers to a geographical location rather than a punitive designation against their legal entity. Management maintains that the facility is not subject to sanctions and that operations are proceeding without obstacles.
