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Government Brokerage Resolves Shell Fuel Crisis With Pertamina Supply Pact
Ministerial directive forces collaboration, turning Pertamina into a supplier of last resort for private stations and ensuring continued market operation. (detikcom/Heri Purnomo)
Jakarta, Indonesia - Direct intervention from Indonesia's Energy Minister has broken the deadlock that left Shell gas stations without gasoline for months, culminating in a 100,000-barrel supply deal with Pertamina Patra Niaga. Shell Indonesia has consequently announced the return of Shell Super gasoline to select stations, primarily in Java, providing a tangible conclusion to a supply crisis that began when private import quotas ran dry. This government-brokered solution transformed Pertamina's role, tasking the state-owned company with importing and selling base fuel to private operators as a mechanism to stabilize the national retail fuel market.
The crisis was precipitated by a policy clash between fixed quotas and market demand. Private operators, including Shell, were granted import quotas for 2025 equivalent to 110% of their previous year's sales volume. However, high demand led these quotas to be exhausted months before the year's end, and the Ministry of Energy and Mineral Resources (ESDM) held firm on not granting additional import permits. Faced with the prospect of widespread station closures, Energy Minister Bahlil Lahadalia mandated that Pertamina step in to supply the private sector.
Pertamina Patra Niaga's execution of this mandate has been a significant logistical undertaking. Beyond the 100,000 barrels supplied to Shell, the company has also provided fuel to other private networks like BP-AKR and Vivo, bringing the total volume distributed to private entities to 430,000 barrels. Corporate Secretary Roberth MV Dumatubun framed this effort as a demonstration of national energy solidarity and Pertamina's robust supply capacity.
The negotiations between Shell and Pertamina were complex and extended over the final months of 2025. Shell's President Director for Mobility, Ingrid Siburian, confirmed that discussions regarding the supply of imported base fuel from Pertamina had entered their final stages before the deal was sealed. The B2B agreement follows strict governance procedures, including joint surveys and open-book negotiations, to ensure commercial clarity.
This supply restoration occurs independently of Shell's planned exit from direct station ownership in Indonesia. The company's agreement to sell its retail network to a Citadel Pacific and Sefas Group joint venture, set for completion in 2026, proceeds as planned. Shell has consistently maintained that this strategic divestment and the recent supply shortages are separate matters, with the brand set to remain in Indonesia under a licensing model.
The episode has served as a real-time stress test for Indonesia's fuel import regulation framework. The government's initial quota system, designed to control imports, proved inflexible in the face of actual market consumption, necessitating an ad-hoc state-led solution. This has sparked discussions about the need for more adaptive mechanisms to prevent future disruptions.
For the retail fuel market, the immediate crisis has abated. Consumers in Jakarta, Banten, and West Java can once again purchase Shell Super gasoline. However, Shell indicates that its premium V-Power products are not yet back on sale, and the long-term supply model for private stations beyond this interim Pertamina supply remains a subject for future policy formulation.
The resolution demonstrates the government's leverage in coordinating national energy assets during a market imbalance, ensuring continuity of service despite the limitations of the existing regulatory framework.
(Bassam Raza)
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