Private Fuel Retailer Vivo Secures Landmark Fuel Deal with Pertamina
Vivo Energy Indonesia (Vivo) has achieved a significant milestone by becoming the first private fuel retailer to secure a deal with state-owned oil and gas company Pertamina, agreed to purchase a substantial 40,000 barrels of base fuel from a larger 100,000-barrel imported cargo.
This agreement comes at a critical time, as private gas stations across Indonesia have been experiencing notable fuel shortages over the past month.
The scarcity is attributed to a growing trend where an increasing number of consumers are switching to the higher-quality, non-subsidized fuel products offered by these private operators.
The formalization of the deal was handled through Pertamina Patra Niaga (PPN) in a business-to-business arrangement.
To ensure full compliance and quality assurance, PPN and Vivo will conduct joint quality and quantity surveys to meticulously verify that the fuel meets all required technical specifications.
Roberth MV Dumatubun, the Acting Corporate Secretary of Pertamina Patra Niaga, commented that the deal is a direct reflection of the government’s directive to foster collaboration with private firms in order to maintain national energy availability.
He emphasized, “This policy is not just about fuel imports, but ensuring all parties work together so energy is available and the public is served effectively,” highlighting the strategic importance of this collaborative model.
The Vivo deal is expected to set a precedent for future procurement arrangements, stabilizing the supply chain for non-subsidized fuels.
Government Pushes for Single-Door Fuel Procurement System
The Energy Minister has actively encouraged private gas station operators to streamline their fuel sourcing through Pertamina via a “single-door system,” a strategy that most major retailers, including Vivo, have now agreed to adopt to ensure supply stability.
Energy Minister Bahlil Lahadalia’s push for a centralized procurement channel is aimed at creating a more organized and less volatile supply market.
Currently, four out of five major private retailers operating in Indonesia—including Shell, BP-AKR, Vivo, and ExxonMobil— have officially agreed to source their base fuel from Pertamina.
Only one major company has yet to finalize its agreement, though details regarding that specific firm were not disclosed.
Local media reports indicate that BP-AKR, while committed in principle, is still in the process of coordinating with Pertamina regarding the details of its base fuel purchase.
The initial base fuel cargo that facilitated the Vivo deal arrived in Jakarta on September 24, 2025, meeting all the stringent specifications set by the Directorate General of Oil and Gas.
Pertamina has publicly committed not to seek excessive profits during the current market conditions, reassuring the private retailers of fair pricing.
Fuel supply in private retailers is expected to return to normal by the following week, alleviating consumer concerns.
A spokesperson from the Energy and Mineral Resources Ministry, Dwi Anggia, confirmed on Friday that “The base fuel will be provided according to the specifications they need, including the quality and other technical requirements, as they have requested in their usual operations.”
Market Dynamics, Scarcity, and Regulatory Concerns
The current supply crunch was exacerbated by private retailers nearly depleting their increased import quota amidst rapidly growing demand, creating a complex situation that highlights the tension between regulatory efficiency and potential market monopolization concerns.
Private retailers had already been granted a 10 percent larger import quota in 2025 compared to the previous year.
However, this increased supply proved insufficient, as the total quota was nearly depleted before the year-end due to the unanticipated surge in demand for non-subsidized fuel.
This extra quota for private firms was equivalent to an additional volume of between 7,000 and 44,000 kiloliters.
In stark contrast, the additional quota granted to Pertamina Patra Niaga was fourteen times larger, reaching a whopping 613,000 kiloliters, underscoring Pertamina’s dominance.
Estimates show that Pertamina currently makes up a commanding 92.5 percent of Indonesia’s total unsubsidized fuel market, making its role in stabilizing the market indispensable.
However, the government’s push for a single-door procurement system through Pertamina has drawn scrutiny from Indonesia’s antimonopoly watchdog, KPPU.
The KPPU has issued a warning that limiting fuel procurement options exclusively through the state-owned giant could potentially reduce consumer choices and disrupt economic activity, pointing out the inherent tension between the government’s desire for simplified supply chain management and the principle of maintaining competitive market dynamics and regulatory oversight.
