Shell, BP, and Vivo delay fuel purchase from Pertamina

PT Pertamina Patra Niaga, the fuel trading subsidiary of state-owned energy company PT Pertamina (Persero), confirmed that no private fuel retailers have finalized agreements to purchase fuel stocks from Pertamina, despite earlier negotiations aimed at easing recent fuel shortages.

Achmad Muchtasyar, Vice President Director of Pertamina Patra Niaga, said that two private retailers—BP-AKR (APR) and Vivo Energy Indonesia—had initially shown interest in purchasing Pertamina’s imported base fuel. Vivo had even agreed to take 40,000 barrels out of a 100,000-barrel offer. However, both companies later withdrew from the deal.

“After further discussions, Vivo decided not to proceed. APR also chose not to continue,” Muchtasyar said during a public hearing with Commission XII of the House of Representatives on Wednesday in Jakarta.

Shell Indonesia, another major private player, has also refrained from finalizing any agreement. Muchtasyar attributed this to internal bureaucratic hurdles within Shell’s organization, which have delayed further negotiations.

“There are internal issues that Shell needs to resolve before they can move forward,” he said, adding that Shell representatives could provide further clarity on their position.

Read also: Pertamina Patra Niaga, Vivo sign fuel supply deal amid import restriction

The push for private fuel retailers to buy from Pertamina stems from recent government restrictions on fuel imports. While private companies were granted a 10% larger import quota for 2025, their allocations have been quickly depleted. In contrast, Pertamina Patra Niaga received an import quota 14 times greater than that of the private sector.

With fuel stocks running low, several private gas stations—including those operated by Shell and BP—have faced supply disruptions and even temporary closures in recent months. In response, the Ministry of Energy and Mineral Resources directed private retailers to source base fuel from Pertamina instead of requesting additional import quotas.

However, the government’s restrictions on fuel imports have drawn criticism from Indonesia’s competition watchdog, KPPU, for undermining fair market competition and disadvantaging private sector players.

To further support domestic supply, Indonesia plans to import 1.4 million kiloliters of oil from the United States, with companies like ExxonMobil and Chevron identified as potential sources.

One sticking point for some private retailers, however, is the ethanol content in Pertamina’s base fuel. Muchtasyar explained that the current stock contains 3.5% ethanol—well within the government’s 20% limit—but some companies are cautious due to differences in fuel specifications.

“This is not a quality issue—it’s about content specifications. Each brand has its own standards,” he clarified. “Private stations have said they’re open to discussions for the next cargo if the specifications align.”

Editing by Reiner Simanjuntak