Competition watchdog criticizes fuel import restrictions

Competition watchdog, KPPU, has condemned the government’s restrictions on unsubsidized fuel imports, calling them unfair to consumers and private retailers.

Private gas stations, including Shell and BP, have faced fuel shortages in recent weeks. Although Indonesia granted private fuel retailers a 10% larger import quota for 2025, their supply has nearly run out, while Pertamina's trading arm, Pertamina Patra Niaga, received significantly more—14 times the quota given to private firms.

KPPU spokesperson Deswin Nur said the policy has worsened market competition, enabling Pertamina’s dominance and limiting consumer choice. "The restrictions have disrupted economic activity and harmed competition," Deswin stated.

Read also : ESDM confirms no additional fuel imports in 2025 despite supply disruptions

The competition authority called for a balanced approach that ensures sufficient supply while maintaining healthy competition, as rising unsubsidized fuel consumption in the country puts pressure on the market. Pertamina controls 92.5% of the unsubsidized fuel market, leaving private companies with a 1-3% share.

KPPU warned that these restrictions could harm private companies and deter foreign investment, which is crucial for Indonesia’s economic growth.

Energy Minister Bahlil Lahadalia urged private retailers to source fuel from Pertamina amid shortages. Shell, BP, Vivo, and ExxonMobil have agreed to purchase Pertamina’s base fuel and process it individually, with joint inspections to ensure quality. Bahlil also assured that Indonesia's fuel supply is sufficient for 18 to 21 days.

Editing by Alexander Ginting