Oil and Gas director-general Laode Sulaeman attributed strong demand as the reason for the decision but did not disclose any details. — The Jakarta Post
JAKARTA: The Energy and Mineral Resources Ministry is increasing the fuel import quota for private retailers for 2026 after the supply shortage that persisted for several months in the latter half of last year.
Private petrol station operators such as PT Shell Indonesia, PT Vivo Energy Indonesia (Vivo) and PT Aneka Petroindo Raya (BP-AKR), a joint venture between Indonesia’s PT AKR Corporindo and the United Kingdom’s BP, faced a supply shortage that began in August and then eventually ran out of fuel after exhausting their 2025 import quotas.
Oil and Gas director-general Laode Sulaeman attributed strong demand as the reason for the decision but did not disclose any details, only noting that the amount of the increase was “similar” to the 10% imposed last year.
“Import permits have been granted,” Laode said on Monday, expressing hope that as a result, supplies at private petrol stations would remain stable to meet public demand.
He added that fuel had been delivered without interruption since the start of the new year, so the supply at private retailers “should already be normal”.
Last Friday, Energy Minister Bahlil Lahadalia said the 2026 import quotas for private operators were calculated in line with the regulations, though he did not provide an actual figure.
The ministry has yet to determine import quotas for “noncompliant” private retailers, Bahlil said.
“Private companies that try to regulate and oppose the state and do not obey state regulations will get what they deserve,” he said at the time, without naming the companies.
Last year’s fuel shortage at private petrol stations was driven by a shift in consumer demand, which experts linked to public outrage over allegations of fuel fraud and illegal imports involving state-owned energy giant Pertamina.
The corruption scandal prompted people to switch to more expensive rival brands that were deemed to meet quality standards.
Public anger towards Pertamina intensified after numerous East Java motorists reported in October that their vehicles had broken down after using subsidised Pertalite fuel.
Experts also blamed the government’s decision to shorten the validity period of import permits from 12 months to just six for contributing to the worsening fuel shortage at private retailers, despite the 10% quota increase compared to realised import figures in 2024.
Regardless of market conditions, the government showed little inclination to raise the 2025 quota further and instead pressed private operators to source base fuel from Pertamina.
In early October, the state oil and gas company reported that negotiations had stalled after Vivo and BP-AKR objected to the ethanol content in its base petrol, even though it fulfilled government specifications.
The two private companies later reached an agreement to purchase Pertamina’s base fuel in November.
As the government refused to increase its import quota, Shell also secured a supply of base fuel from Pertamina in December following months-long negotiations, ending its supply strain.
The company procured 100,000 barrels of imported RON-92 base petrol through a business-to-business agreement with PT Pertamina Patra Niaga, the energy giant’s commercial arm. — The Jakarta Post/ANN
