GOVERNMENT, PERTAMINA, AND PRIVATE SECTOR COLLABORATION IS KEY TO OVERCOMING FUEL SHORTAGES

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

 

The recent fuel shortage at private gas stations across Indonesia since mid-August 2025 is a strong signal that the country's energy management still requires serious reform—particularly in the areas of distribution and import quota allocation. In this context, the swift action by the Ministry of Energy and Mineral Resources (ESDM) and Pertamina to coordinate with private sector players deserves appreciation as a prompt response to an urgent issue. However, more than just patching up supply gaps, what’s truly essential is preventing such incidents from recurring.

 

In a healthy and competitive energy market, fuel distribution should not rely too heavily on a single entity—especially when import quota policies fail to keep up with actual consumption trends and the growing number of non-Pertamina gas stations. Structural weaknesses in the energy distribution system, such as centralization and lack of flexibility, must be addressed if Indonesia is to build a resilient energy future.

 

The government's decision to allow an additional 10% fuel import quota for private companies is a commendable short-term solution. However, this policy should also serve as a catalyst for deeper discussions on long-term energy planning that is more inclusive and data-driven. Companies like Shell, BP-AKR, Vivo, and ExxonMobil must be given a seat at the table when it comes to planning and forecasting national energy needs.

 

One noteworthy agreement is the adoption of base fuel (pure fuel without additives), which allows each company to add its own additives at their respective storage facilities. This business-to-business (B2B) arrangement is a pragmatic solution that helps reduce logistical burdens and increases operational flexibility. Nevertheless, strict quality control through independent joint surveyors remains essential to ensure the fuel delivered to consumers meets established standards.

 

Equally important is the issue of price transparency and fair distribution commitments. Minister of Energy and Mineral Resources, Bahlil Lahadalia, stated that there is an agreement on “fair and transparent pricing” along with an “open book” policy. While this is a positive move on paper, it will only be meaningful if implemented with integrity and monitored by independent oversight bodies.

 

Moving forward, the government must strengthen import quota monitoring systems, improve inter-agency coordination, and create more space for private sector participation in the national energy supply chain. The current fuel supply crisis is a stark reminder that transparency and collaboration—not monopoly—are the true foundations of energy resilience in Indonesia.

 

Only through open, accountable, and sustained cooperation between the government, state-owned enterprises like Pertamina, and the private sector can Indonesia build a robust and inclusive energy system capable of meeting future challenges.

K&Co - September 26, 2025