Indonesia's fuel market saw significant changes as of January 1, 2025, following the government's latest mandate aimed at adjusting prices and promoting environmentally sustainable fuel options. The national energy sector, including major suppliers like Pertamina, Shell, and BP, implemented new pricing structures in response to shifting global oil prices, reflecting the government's intent to stabilize domestic energy costs and improve energy self-sufficiency.
Starting the new year, the average price for non-subsidized fuels increased at Pertamina stations across Jakarta, with Pertamax (RON 92) setting at Rp 12,500 per liter, up from Rp 12,100 the previous month. Meanwhile, the prices for subsidized fuels remained unchanged, marking Rp 10,000 for Pertalite (RON 90) and Rp 6,800 for subsidized diesel.
Interestingly, just days after the hikes, Shell Indonesia announced price reductions on January 3, 2025. The price for Shell Super, equivalent to Pertamax RON 92, decreased from Rp 12,930 per liter to Rp 12,810—a drop of Rp 120. Despite the decrease, Shell fuels still remained higher priced than Pertamax and several competitors like Vivo Energy, which were also adjusting their pricing structures concurrently.
The adjustments come as part of the government's broader energy strategy, which includes plans for integrating biodiesel with fossil fuels. The Minister of Energy and Mineral Resources, Bahlil Lahadalia, confirmed the transition of biodiesel from B35 to B40, which mixes 40% biodiesel—sourced primarily from palm oil—with diesel fuel. This change, effective January 1, aims to help Indonesia achieve energy independence and reduce dependency on imports according to Minister Bahlil's announcements.
Bahlil emphasized the government's mission is aligned with President Prabowo Subianto’s agenda for energy resilience and zero-emission targets by 2060. "Kami telah memutuskan peningkatan biodiesel dari B35 ke B40, dan hari ini kami umumkan sudah berlaku mulai 1 Januari 2025," stated Bahlil during the announcement, highlighting the successful completion of internal discussions on biodiesel policy.
Looking forward, there are plans to escalate the biodiesel blend to B50 by 2026, presenting it as part of Indonesia’s long-term strategy to achieve self-sufficiency. Presented with confidence, Bahlil noted, "Kalau ini berjalan baik, atas arahan Presiden Prabowo, kita akan mendorong implementasi B50 pada 2026," reinforcing the goal for reduced fossil fuel reliance and enhanced energy security.
For 2025, the government has earmarked 15.6 million kiloliters of biodiesel, allocated both for Public Service Obligation (PSO) purposes and non-PSO consumers. This structured allocation includes 7.55 million kiloliters designated for PSO. With this concerted effort, the administration aims to double down on its commitment to creating sustainable energy practices.
While price adjustments for fuel and the switch to biodiesel aren’t without challenges, Indonesian authorities endeavor to balance market dynamics with national energy goals. With the oil and gas sector under continual scrutiny, the implementation of these new policies showcases Indonesia’s efforts to navigate regional energy uncertainties, secure energy independence, and commit to global environmental standards.
The evolution of fuel pricing and biodiesel mandates highlights Indonesia's strategic response to both economic imperatives and environmental commitments. Consumers will need to adapt to the new prices, countering the impacts of global oil market volatility, all the meanwhile playing their part in the country's green energy aspirations.