Archive · 25 Sep 2025
China's Oil Imports from Indonesia Raise Sanctions Concerns
China bought a lot more oil from Indonesia than usual, but Indonesia usually *buys* oil, not sells it.
This is suspicious because China is known to buy oil from Iran, which has sanctions against it from the US.
It seems that oil tankers may be moving Iranian oil to Indonesia, then on to China.
This lets China get cheap oil and helps Iran sell its oil despite the sanctions.
The US is trying to stop this, but the companies involved are finding ways around the rules, making it hard to monitor.
China's August crude oil imports from Indonesia were unusually high.
Indonesia is a net oil importer, raising questions about the origin of the oil.
The rerouting potentially involves Iranian oil being rebranded and sent to China.
Tankers are suspected of transferring oil and changing locations to conceal origins.
This is potentially an effort to evade US sanctions on Iranian oil sales.
- Who
- China, Iran, Indonesia, United States
- What
- China's increased oil imports from Indonesia potentially involve rerouting Iranian oil to evade US sanctions.
- When
- August (for the import data); since mid-2022 (no official Iranian crude imports to China)
- Where
- Indonesia, China, Malaysia, and possibly Iranian waters.
- Why
- To allow China to continue purchasing discounted Iranian oil and help Iran bypass US sanctions.
US Stance
China/Iran Stance
Sanctions Compliance
US Stance
The US seeks to enforce sanctions on Iranian oil exports to restrict Iran's financial resources.
China/Iran Stance
China and Iran prioritize securing oil supplies and maintaining trade, even if it means working around sanctions.
- China's Imports from Indonesia
- 2.7 million tonnes in August
- Indonesia's Oil Production (2022)
- Around 580,000 barrels per day
- Indonesia's Oil Demand
- Nearly 1.7 million barrels daily
- Reported Ports Involved
- Kabil (Batam Island), Qingdao, Dalian, Rizhao
- Key Tankers
- Aquaris, Yuhan, Pola, Pix
- Prior Staging Point
- Malaysia