Jakarta – A number of private companies have rejected fuel stocks belonging to Pertamina Patra Niaga (PPN) because they are considered not to meet specifications, particularly concerning the 3.5 per cent ethanol content. However, the Ministry of Energy and Mineral Resources (MEMR) has been reluctant to respond further to these complaints and has only emphasised that the national fuel stock supply remains secure.
On Thursday, October 2, Minister of Energy and Mineral Resources Bahlil Lahadalia stated that the government has prepared a mechanism to enable businesses facing supply shortages to partner with Pertamina.
“Our fuel stock is sufficient for 18 to 21 days. Whether it’s RON 92, 95, 98 or Pertalite, everything is secure. It is the government’s responsibility to ensure supply. As for B2B, they can arrange it themselves,” he said.
Pertamina Patra Niaga previously reported the cancellation of agreements with BP-AKR and Vivo. In fact, Vivo had even ordered 40,000 barrels of base fuel. According to private sources, the reason for the rejection was the 3.5 per cent ethanol content in the fuel offered.
Deputy Director of Pertamina Patra Niaga, Achmad Muchtasyar, explained that according to regulations, ethanol content of up to 20 per cent is still permitted by the government.
“The 3.5 per cent ethanol content is safe and complies with regulations. However, each business entity has its own brand specifications, so it is considered unsuitable,” he explained during a hearing with Commission XII of the Indonesian House of Representatives.
Pertamina affirms compliance with standards
Despite being rejected by the private sector, Pertamina insists that all fuel products distributed remain in accordance with official government standards. Acting Corporate Secretary of Pertamina Patra Niaga, Roberth MV Dumatubun, said that the practice of mixing ethanol is common in many countries. “The use of fuel with up to 10 per cent ethanol is an international best practice, from the United States and Brazil to Thailand. The goal is to reduce carbon emissions and support more environmentally friendly energy,” he explained.
Pertamina is also open to negotiations with private gas stations. “We are not working alone to maintain the national energy supply. Collaboration with private gas stations remains open, but we must respect each other’s internal procedures,” added Roberth.
Stocks are secure, controversy continues
Bahlil reiterated that private sector rejection does not affect national stocks. “There is no reason to say that supplies are running low. Everything is full, and import quotas have been allocated according to demand,” he said.
Although fuel services are reported to be running normally, the controversy over ethanol content remains a hurdle in the distribution partnership between Pertamina and the private sector. The fate of the negotiations now depends on both parties reaching an agreement on acceptable specifications. (Hartatik)
Banner photo: putradigitalid/shutterstock.com
