Distributors withdraw from base fuel deals, citing ethanol levels and compliance concerns.
Two private fuel distributors, Vivo and BP-AKR, have canceled plans to purchase base fuel from Indonesian state-owned energy giant Pertamina. The decision, announced on October 1, 2025, highlights concerns over ethanol content and compliance requirements despite initial agreements.
Vivo Cancels 40,000-Barrel Agreement
Initially, Vivo agreed to purchase 40,000 barrels of Pertamina’s imported base fuel out of a 100,000-barrel cargo, following recommendations from Indonesia’s Ministry of Energy and Mineral Resources (ESDM). However, the company withdrew after discovering that Pertamina’s fuel contained 3.5% ethanol. While regulations allow ethanol content up to 20%, Vivo cited technical issues and unmet qualifications as reasons for backing out. The company emphasized that cooperation with Pertamina could still resume if requirements are met in the future.
BP-AKR Raises Compliance and Origin Concerns
BP-AKR, a joint venture between BP and AKR Corporindo, also canceled its intended purchase. President Director Vanda Laura explained that the company required a Certificate of Origin to ensure the product was not sourced from countries under international embargo. As BP operates in more than 70 countries, strict compliance with global trade standards was deemed essential. The ethanol content of 3.5% was also a decisive factor in halting the deal.
Pertamina’s Position on Ethanol
According to Pertamina Patra Niaga’s Deputy CEO, Achmad Muchtasyar, the ethanol levels in the base fuel complied with national regulations, which allow up to 20% ethanol. He confirmed that both Vivo and BP-AKR opted out due to the content, despite Pertamina’s assurances. “It is permitted by regulation, but the companies decided not to proceed,” Achmad stated during a parliamentary hearing.
Shell Still in Internal Discussions
Unlike Vivo and BP-AKR, Shell Indonesia has not finalized any agreement with Pertamina. Ingrid Siburian, President Director & Managing Director of Shell Mobility Indonesia, said discussions remain ongoing within the company. She noted that while Pertamina has offered a base fuel supply, Shell must complete internal reviews before making a decision.
Government Encourages Collaboration
Pertamina previously expressed optimism about private sector collaboration, stressing that securing fuel supply requires cooperation among all distributors. “This policy is not just about imports but ensuring energy availability for the public,” said Roberth MV Dumatubun, Corporate Secretary of Pertamina Patra Niaga. Despite setbacks, officials remain open to future agreements with private retailers.
The withdrawal of Vivo and BP-AKR from Pertamina’s base fuel deals underscores the complexity of balancing regulatory compliance, international trade standards, and technical specifications in Indonesia’s fuel market. While Pertamina maintains its ethanol content meets legal thresholds, stricter corporate policies among distributors reveal the challenges of aligning domestic regulations with global expectations. For regional energy markets, including Singapore, the situation reflects the tightening interplay between compliance, supply security, and international standards.
Sources: Tirto.id (2025) , Kompas.com (2025)
Keywords: Pertamina Fuel, Base Fuel, Vivo Cancellation, BP-AKR Compliance, Ethanol Regulation, Shell Negotiation
