Thursday, 25 September 2025

BASE FUEL COLLABORATION : A STRATEGIC MOVE TO ADDRESS THE FUEL SUPPLY CRISIS

By KUSNANDAR & CO., Attorneys at Law – Jakarta, INDONESIA

 

In recent weeks, the public has once again faced a fuel shortage, particularly at gas stations operated by private companies. Long queues and empty stock have disrupted economic activities, logistics distribution, and daily mobility. This situation raises concerns about the vulnerability of the national energy distribution system, which should be resilient in the face of global pressures and domestic market dynamics.

 

In response to this condition, the Ministry of Energy and Mineral Resources (ESDM) has taken a strategic step by allowing private companies to utilize Pertamina’s base fuel cargo, which has arrived in Jakarta. This initiative represents a measured government intervention that is not only curative but also opens up new opportunities for collaboration between state-owned energy companies and the private sector.

 

Base fuel is a refined fuel product that has not yet been blended with additives or colorants. In other words, it is raw fuel ready to be further formulated according to the octane standards set by government regulations. This is where the flexibility and advantage of this solution come into play. Private gas stations can customize their final product to meet market needs and technical standards without having to import finished fuel—a process often hindered by international price fluctuations, limited quotas, or logistical barriers.

 

The decision to permit the use of base fuel by private entities also signals a new approach in the government’s energy management. Whereas previously state-owned enterprises like Pertamina held a dominant role in the fuel distribution chain, there is now a more open space for private actors to actively participate—under strict supervision and with good governance principles. This shift demonstrates that the government is no longer positioning itself as the sole controller of energy distribution, but rather as a facilitator enabling strategic collaboration among stakeholders in the energy ecosystem.

 

Pertamina Patra Niaga, in its statement, affirmed its commitment to maintaining product quality through joint surveyor mechanisms and technical verification processes. Additionally, Pertamina is opening the door for individual discussions with private businesses to accurately forecast demand and develop distribution patterns. This is critical, as smooth fuel distribution relies heavily on accurate demand data and well-planned logistics.

 

However, despite this initiative being commendable, several challenges must be addressed collectively. First, not all private businesses are immediately ready to access this base fuel. Some companies still need to coordinate with their overseas headquarters, especially regarding legal, contractual, and technical aspects. Second, it is essential to ensure that the process of blending additives and final formulation does not violate quality standards that could harm consumer vehicles or the environment. This is where government oversight becomes crucial.

 

Transparency in pricing must also be a priority. While opening up fuel supply is necessary, it should not lead to price disparities that burden consumers, especially in regions that heavily rely on private gas stations. If non-subsidized fuel prices soar without regulation, the economic impact of the shortage will still be felt—even if physical stock is available.

 

Nonetheless, this collaboration marks a significant step toward a more resilient and adaptive energy system. The government is demonstrating a willingness to move beyond overly bureaucratic models, while Pertamina is showing that a state-owned company can also play an inclusive stabilizing role. On the other hand, private businesses are expected not to be driven solely by commercial interests, but also to share responsibility in safeguarding national energy security.

 

Fuel availability is an essential part of energy sovereignty. Therefore, the success of this collaboration will be a critical determinant in shaping future energy policy. If implemented consistently, transparently, and with broad participation, this initiative could serve as an important precedent for redesigning a more modern and efficient national energy distribution system.


K&Co - September 26, 2025

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