PT Shell Indonesia has confirmed that viral reports about the closure of all its public fuel filling stations (SPBU) in Indonesia is not true.
“Shell Indonesia informs that the information circulating regarding Shell’s plan to close all gas stations in Indonesia is not true,” Shell Indonesia’s Vice President of Corporate Relations, Susi Hutapea, said as quoted by Antara on Sunday, November 24, 2024.
However, Susi declined to comment on the speculation developing in the market. She emphasized that Shell Indonesia remains focused on gas station operational activities to serve customers.
The issue regarding the closure of Shell gas stations has become a public concern, including the National Oil and Gas Companies Association (Aspermigas). Head of Aspermigas’ Investment Committee, Moshe Rizal, admitted that he had heard rumors regarding this several weeks earlier.
“If you ask whether I’ve heard about it, yes I’ve heard about the news (Shell gas stations’ closure). So, it was a few weeks ago,” Moshe said as quoted by Bloomberg Technoz.
He added that the fuel distribution business through gas stations in Indonesia is indeed facing major challenges, one of which is due to Pertamina’s dominance.
Energy transition
The issue on the closure of Shell gas stations is suspected to be related to the company’s global strategy in supporting the energy transition. In its Energy Transition Strategy 2024 report, Shell stated its plan to close around 1,000 gas stations worldwide by 2025.
“We plan to release around 500 Shell locations (gas stations) including joint ventures each year in 2024 and 2025,” Shell wrote in a report released last March.
To date, Shell has around 47 thousand gas station outlets in the world, with 103 thousand employees spread across more than 70 countries. In Indonesia itself, Shell operates 170 gas stations, one lubricant plant in Marunda, Jakarta, and a fuel storage terminal in Gresik, East Java.
Despite global plans to close a number of gas stations, Shell Indonesia emphasized that its operations in Indonesia are continuing as usual. This is in response to the concerns of their loyal customers.
Shell Indonesia asks the public not to be provoked by unverified news. The company appeals for official information to only be accessed through trusted communication channels.
