Akmalal Hamdhi, Jakarta – The Indonesian business competition watchdog KPPU has slammed the government's decision to restrict unsubsidized fuel imports, citing that it is unfair to both consumers and private retailers.
Supplies have run dry at privately-run gas stations like Shell and BP over the past weeks.
Indonesia gave private fuel retailers a 10 percent bigger import quota in 2025 compared to last year, but their gas stations have nearly exhausted the supplies before the year ends. The extra quota is equivalent to between 7,000 and 44,000 kiloliters. Pertamina's trading subsidiary arm, Pertamina Patra Niaga, on the other hand, gets fourteenfold of what private firms receive, reaching 613,000 kiloliters in additional quota.
KPPU's spokesperson Deswin Nur said that the restrictions had allowed Pertamina to dominate the market further, thus fueling the already unfair competition.
"The policy has caused consumers to have fewer choices in the market, while also disrupting economic activities," Deswin said in a statement on Monday.
KPPU urged the government to strike a balance between adequate supply and healthy business competition amidst the country's rising consumption of unsubsidized fuel. Estimates showed that Pertamina made up 92.5 percent of the country's unsubsidized fuel market.
Private companies only have between 1 and 3 percent market share. KPPU said that the restrictions could shut out private companies via market foreclosure. Such restrictions can also send a negative signal to foreign investors, which can lead to dire consequences on Indonesia's goal to boost investment inflows.
According to KPPU, the government should also strike a balance between energy stability, market efficiency, and a healthy investment climate.
"This way, Indonesia can achieve its targeted growth by increasing investment inflows and the role of private companies," Deswin said.
Energy Minister Bahlil Lahadalia had repeatedly been urging private retailers to procure fuels from Pertamina following the shortages. He revealed that private retailers Shell, BP, Vivo, and ExxonMobil had agreed to buy Pertamina's base fuel, without mixtures of additives, following the shortages. The companies will individually process the base fuel. As part of the deal, the government and the private firms will also send a joint surveyor to check on the quality of the fuel before purchase.
"The pricing of the [base fuel] purchases must be open and agreed upon," Bahlil told reporters in Jakarta last week. According to Bahlil, Indonesia's current fuel supply is enough for 18 to 21 days.