The government, through the Ministry of Energy and Mineral Resources (ESDM), plans to issue a policy requiring fuel imports for foreign-owned fuel stations to be conducted through a single gate under PT Pertamina (Persero). With this policy, it appears that the government intends to shift downstream oil and gas management from a liberalized system back to a regulated policy.
Universitas Gadjah Mada (UGM) energy economist Dr. Fahmy Radhi stated that foreign companies initially agreed to invest in fuel stations because of the liberalized governance system.
At that time, foreign companies were allowed to freely establish fuel stations across Indonesia, independently procure fuel within the allocated quota, and freely determine consumer prices based on market mechanisms.
“With the implementation of the single-gate fuel import policy, foreign fuel stations will no longer have the freedom to independently import fuel. In fact, one of their main sources of profit margin came from fuel imports, where they could choose the cheapest supplier country and reduce procurement costs,” said Dr. Radhi at the UGM campus on Tuesday, Sep. 16, 2025.
According to Dr. Radhi, under the single-gate import system, foreign-owned fuel stations will no longer be able to import at the lowest possible price but must purchase fuel from Pertamina at prices determined by the state-owned company.
In such a condition, profit margins will shrink, and eventually, foreign fuel stations may incur losses.
“With continuous losses, it is not impossible that foreign-owned stations will collapse and eventually shut down,” Dr. Radhi stressed.
He added that once all foreign fuel stations exit Indonesia, downstream oil and gas management will effectively be monopolized by Pertamina.
The withdrawal of foreign players would also affect Indonesia’s investment climate, not only in the oil and gas sector but also in other business sectors.
According to Dr. Radhi, a deteriorating investment climate would inevitably hinder the achievement of President Prabowo’s targeted economic growth of 8 percent per year.
“The government should cancel the plan to implement the single-gate fuel import policy, as it would become a policy blunder,” he explained.
Author: Agung Nugroho
Post-editor: Lintang Andwyna
Illustration: Freepik