Pertamina and Shell Near Fuel Supply Agreement

Advanced Negotiations Signal Potential Market Shift

State-owned energy company Pertamina and global energy player Shell are on the verge of a significant fuel supply agreement, with the Indonesian Ministry of Energy and Mineral Resources (ESDM) announcing that negotiations have reached a critical stage. The proposed deal involves the supply of 100,000 barrels of fuel from Pertamina to Shell, a transaction that could have far-reaching implications for Indonesia's energy sector.

Government Statement vs. Company Position

According to Yuliot Tanjung, Deputy Minister of ESDM, Pertamina and Shell have reached an agreement regarding the fuel supply. "More or less 100,000 barrels," Yuliot confirmed during a meeting at Sheraton Hotel, Jakarta. The handover was expected to take place around November 25, 2025, at a location agreed upon by both parties. However, Shell's management presented a slightly different narrative, stating that while negotiations were progressing well, they were still in the final stages. Ingrid Siburian, President Director & Managing Director Mobility at Shell Indonesia, clarified that the business-to-business (B2B) discussions related to the import supply of base fuel from Pertamina Patra Niaga were nearing completion.

Market Implications

This potential agreement between Pertamina and Shell could significantly impact Indonesia's energy landscape. The deal not only demonstrates the government's efforts to ensure energy security but also highlights the strategic collaboration between state-owned enterprises and international energy players. Should the agreement be finalized, it is expected to contribute positively to the stability of Indonesia's fuel supply during peak demand periods, such as the upcoming holiday season.

Industry Context

The negotiation between Pertamina and Shell underscores the dynamic nature of Indonesia's energy sector, where state-owned companies and multinational corporations collaborate to meet domestic energy demands. This development is particularly noteworthy as it comes at a time when Indonesia is working to maintain fuel stock stability during the year-end holidays and into 2026. The successful execution of this agreement could set a precedent for future collaborations in the energy sector, potentially leading to more robust energy security measures in the country.