Experts question whether Iran’s sanctioned oil is being disguised as Indonesian shipments through Batam waters.

A sharp rise in China’s crude oil imports from Indonesia has sparked global scrutiny, with analysts suspecting that Iranian oil may be rerouted through Southeast Asia to evade U.S. sanctions. Recent vessel-tracking data points to Batam’s Kabil Port as a possible transit point in a widening shadow trade network.

A Sudden Surge in Indonesia’s Crude Exports

China’s customs data revealed that in August 2025, imports of crude oil from Indonesia reached 2.7 million tons, or roughly 630,000 barrels per day (bpd) — a level unprecedented in recent decades. This followed a tripling of import volumes in July. The numbers raise eyebrows, as Indonesia remains a net oil importer with domestic output around 580,000 bpd and consumption exceeding 1.7 million bpd, according to the U.S. Energy Information Administration (EIA).

Suspicion of Iranian Oil Rebranding

Beijing officially halted recorded oil imports from Iran in mid-2022 to avoid U.S. penalties. However, analysts believe Iran continues to sell oil through a “shadow fleet” — a network of tankers operating under false flags and opaque ownership structures. These ships often perform ship-to-ship (STS) transfers in Southeast Asian waters, blending Iranian crude with regional cargoes to disguise its origin.

Data shows that while Malaysia’s oil exports to China have dropped more than 30% in the past two months, Indonesia’s have soared. “It’s part of a continuous evolution of tactics to conceal operations,” said Charlie Brown, Senior Advisor at United Against Nuclear Iran. “The transfer zones off Malaysia and nearby waters remain active; only the documentation seems to change.”

Batam’s Kabil Port: A Shadow Transit Point

Tracking data from Vortexa Ltd. and other maritime intelligence firms identified suspicious activity around Kabil Port in Batam, located south of Singapore. Several tankers — including Aquaris, Yuhan, Pola, and Pix — reportedly docked there before heading to China.

• Aquaris allegedly received cargo from Sorion, a U.S.- and U.K.-sanctioned vessel for carrying Iranian oil, before offloading at Qingdao’s Haiye Terminal in China.
• Yuhan departed Kabil in June, then reached Rizhao, China, in July with 202,000 barrels of crude of “unclear origin.”
• Pola was spotted near Malaysia taking Iranian oil, later delivering 490,000 barrels to Dalian, China.

These patterns suggest Batam may be serving as a staging point for oil disguised as Indonesian exports.

Official Silence and Data Discrepancies

Neither Indonesia’s Ministry of Energy and Mineral Resources (ESDM) nor Pertamina have issued statements regarding the matter. The Central Statistics Agency (BPS) reported Indonesia’s July 2025 crude exports at only 1.3 million tons, far below China’s reported import figures. China’s Foreign Ministry also declined to comment on potential re-export routes from Batam or Malaysia.

Experts Urge Caution: “No Solid Proof Yet”

Energy economist Ali Ahmudi Achyak, Executive Director of the Center for Energy Studies (CESS), urged against premature conclusions. “It’s fair to question the anomaly, but so far, there is no conclusive evidence proving Iranian oil is being re-exported through Indonesia,” he said. According to Achyak, claims of smuggling rely mostly on commercial data, satellite tracking, and analyst reports, which are often incomplete due to vessels switching off transponders and complex document layering.

He added that to verify the allegations, investigators would need access to export records, ship ownership documents, customs declarations, and legal findings. “Until then, it remains speculation,” he noted.

A Strategic Game Under Sanctions Pressure

Analysts view these developments as part of the geopolitical chessboard of global energy trade. Under mounting U.S. sanctions, Iran is seeking indirect routes to maintain its oil revenues, while China — heavily reliant on Iranian crude — is incentivized to find ways around restrictions. Using third-party countries like Indonesia or Malaysia could provide temporary camouflage in a high-stakes energy supply chain.

Whether Indonesia’s sudden oil export boom is a data anomaly or a deliberate cover for Iranian shipments, the case underscores growing regional vulnerability to global sanction dynamics. For Indonesia and neighboring Singapore, Batam’s suspected role highlights the need for stronger maritime monitoring and transparency to safeguard Southeast Asia’s reputation as a trusted trade hub amid intensifying geopolitical maneuvering.

Sources: Batamnews (2025) , Inilah.com (2025)

Keywords: Crude Oil, Indonesia Export, China Import, Iran Sanctions, Batam Port