Private fuel retailers begin buying Pertamina diesel after Indonesia halts imports

By Calvin Purba

Private fuel retailers in Indonesia have started purchasing domestically produced diesel from PT Pertamina (Persero) following the government’s policy to halt diesel imports this year, a senior official from The Ministry of Energy and Mineral Resources  said.

Director General of Oil and Gas Laode Sulaeman said private companies had held meetings with Pertamina and begun procuring diesel from the state energy firm.

“Yes, since the policy was announced, meetings have already taken place,” Laode said on Wednesday.

The government stopped diesel imports after projecting a domestic supply surplus driven by the operation of the Balikpapan Refinery Development Master Plan (RDMP) and implementation of the mandatory 40% biodiesel blending program, known as B40.

Read also: Private retailers in talks with Pertamina over fuel purchases

Laode said the government had informed all fuel business entities that import quotas from 2025 would only remain valid until March 2026. Starting in April, companies were required to procure diesel through business to business cooperation with Pertamina.

Indonesia is expected to face a diesel surplus of around 7.4 million kiloliters per year after the implementation of B40, according to Wiko Migantoro, senior director for oil, gas and petrochemicals at BPI Danantara Indonesia.

Wiko said the higher biodiesel blend reduced domestic demand for fossil based diesel fuel. He added that the surplus could increase to 8.3 million kiloliters annually if Indonesia adopts a B50 mandate.

Sigit Setiawan, vice president for business development at PT Pertamina Patra Niaga, said rising biodiesel blending would continue reducing demand for pure diesel and create imbalance in the downstream fuel market.  

Editing by Alexander Ginting