Vivo cancels base fuel purchase from Pertamina over ethanol content concerns

  • Published on 02/10/2025 GMT+7

  • Reading time 2 minutes

  • Author: Julian Isaac

  • Editor: Imanuddin Razak

PT Vivo Energy, operator of Vivo gas stations in Indonesia, has withdrawn from an agreement to purchase imported base fuel from state-owned energy company Pertamina, said Achmad Muchtasyar, Deputy Director of Pertamina Patra Niaga, during a hearing with Commission XII of the House of Representatives on Wednesday, January 10, 2025.

Initially, Vivo and another private fuel distributor, APR, had agreed on September 26, 2025 to absorb part of the base fuel supply offered by Pertamina. Base fuel is raw fuel that has not yet been blended with additives or dyes, which private gas stations typically process according to their own specifications. These variations in additives and coloring are what distinguish the final retail fuel products across different brands.

Achmad cited that both Vivo and APR eventually backed out of the deal after further discussions with the government and Pertamina. He said the companies raised concerns about the ethanol content in the base fuel.

The batch in question contained 3.5 percent ethanol, which remains well within Indonesia’s regulatory allowance of up to 20 percent. However, according to Achmad, the private distributors opted not to proceed with the purchase due to differences in product specifications.

Despite the cancellation, Pertamina emphasized that opportunities remain open for private gas stations to take part in future procurement if the cargo meets their quality standards. Each brand, Achmad noted, has unique requirements for its end products.

Previously, Vivo had committed to absorbing 40,000 barrels out of the 100,000 barrels offered by Pertamina. The agreement was meant to help secure domestic fuel supplies and ensure smooth energy distribution to consumers.

Roberth Marcelino Verieza Dumatubun, Pertamina’s Corporate Secretary, highlighted at the time that the procurement deal was not just about fuel imports but also about cooperation between stakeholders to guarantee reliable energy availability.

He stressed that all supply processes would follow state-owned enterprise (SOE) regulations and compliance standards, with quality and quantity inspections conducted by approved surveyors.

The imported base fuel shipment arrived in Jakarta on September 24, 2025 just days after the initial agreement on September 19, 2025. Pertamina had expedited the delivery, cutting the usual seven- to ten-day import timeframe.

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