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Indonesia shifts fuel procurement strategy amid Middle East supply risks
Indonesia's Ministry of Energy and Mineral Resources (ESDM) has announced several strategic shifts regarding fuel and energy policy. To combat supply uncertainties caused by geopolitical tensions in the Middle East and the closure of the Strait of Hormuz, the government is moving away from traditional auction mechanisms for fuel imports. Instead, officials will directly seek out countries with surplus oil stocks to ensure national fuel security.
Regarding domestic pricing, Pertamina has maintained the prices for both subsidized and non-subsidized fuels for October 2026. Subsidized fuels, such as Pertalite and Biosolar, are expected to remain at their current rates through the end of 2026 to help control inflation and protect the purchasing power of farmers and fishermen. Non-subsidized fuels, including Pertamax and avtur, also remain unchanged from September levels.
Addressing recent fuel queues in regions like Batam and East Java, the ESDM clarified that the issue stems from El Nino-induced droughts affecting river-based distribution rather than a lack of stock. Additionally, the government is developing new fiscal incentive schemes for coal-to-methanol gasification projects to replace tax holidays, ensuring investment remains competitive under new global minimum tax regulations.
Entities
BP-AKR · Bahlil Lahadalia · Indonesia · Laode Sulaeman · Ministry of Energy and Mineral Resources · PT Pertamina Patra Niaga · Pertamina · Shell · Vivo · Yuliot Tanjung
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] Subsidized fuel prices, including Pertalite and Biosolar, will remain unchanged through the end of 2026 to control inflation. www.viva.co.id
- [○ 1 SOURCE] Indonesia has lost approximately 25 percent of its national oil supply due to the closure of the Strait of Hormuz.
- [○ 1 SOURCE] Fuel queues in regions like Batam, Palu, and East Java are caused by El Nino-induced river droughts affecting distribution, not a lack of stock. katadata.co.id
- [● 2 SOURCES] Pertamina is maintaining the prices of non-subsidized fuels (Pertamax, Pertamax Green, etc.) and avtur for October 2026 at September levels. ekbis.harianjogja.com
- [○ 1 SOURCE] The Indonesian Ministry of Energy and Mineral Resources (ESDM) is shifting from an auction mechanism to direct procurement of imported fuel to mitigate supply uncertainties caused by Middle East's geо
- [○ 1 SOURCE] The Indonesian government is developing new fiscal incentives for coal-to-methanol gasification projects to replace tax holidays due to the global minimum tax. www.cnbcindonesia.com