Recently, Bloomberg reported on September 24th that the Chinese Communist Party has significantly increased its imports of oil from Indonesia over the past two months, sparking questions about the sources behind this surge.
Data shows that in August, China imported a total of 2.7 million tons of oil from Indonesia, equivalent to around 630,000 barrels per day, an increase from July. The import volume in July was three times that of June. Such a rapid growth is highly unusual, especially considering Indonesia became a net importer of oil over 20 years ago.
According to data from the U.S. Energy Information Administration, Indonesia produced approximately 580,000 barrels of oil per day in 2024, but domestic demand was close to 1.7 million barrels. This means that Indonesia itself faces a shortage of oil and exporting to China raises suspicions about the origin of the oil.
Bloomberg’s report indicated that several foreign media outlets had previously exposed that the Chinese Communist Party has been evading U.S. sanctions by using a “shadow fleet” to purchase oil from Iran. Although Chinese customs data shows no imports from Iran since mid-2022, the amount of oil imported from Malaysia far exceeds the country’s actual production. The eastern waters of Malaysia have long been a transshipment point for ship-to-ship transfers, allowing oil to be rerouted to China by changing its origin through “flag washing.”
Charlie Brown, a senior advisor from the United Against Nuclear Iran, stated that these operations are merely evolving tactics used by operators to conceal the real transactions.
Vessel tracking records show that some tankers signal a stop at the port of Kabil on Bintan Island in Indonesia before heading to China to unload their cargo. However, Kabil Port lacks crude oil export facilities and is close to the waters off Johor, Malaysia, a mature transshipment point for ship-to-ship transfers.
For example, the tanker Aquaris signaled a trip to Indonesia in May but redirected to the waters off Malaysia to receive Iranian crude from the sanctioned tanker Sorion, unloading it in Qingdao, China in June. The Qingdao terminal was later sanctioned by the U.S. State Department in August. Subsequently, the Aquaris repeated a similar journey, currently on its third trip towards Kabil.
Another tanker, the Yuhan, departed from Kabil in Indonesia in June, claimed to be heading to the waters off Johor, Malaysia, and then arrived in Rizhao, Shandong, China in July, unloading over 200,000 barrels of unidentified oil. In May, it had received Iranian crude off the waters of Malaysia and delivered it to Dalian, China.
The tanker Pola, announced to stop at Kabil at the end of July, was later found to have received Iranian crude oil, unloading in Dalian in mid-August. It returned to Kabil and left on September 13, expected to arrive in Rizhao soon.
These occurrences raise concerns about the transparency and legitimacy of oil imports into China, especially through unconventional routes that raise questions about the true origins of the oil.