Jakarta. Energy and Mineral Resources Minister Bahlil Lahadalia said on Thursday that the government will not intervene in the dispute between Vivo Energy Indonesia and state-owned oil and gas company Pertamina, after the private fuel retailer canceled a planned purchase of imported base fuel.

“This is purely a business-to-business matter. Communication and collaboration between Pertamina and private companies must continue,” Bahlil told reporters in Jakarta, emphasizing that the government’s role is limited to mediation.

Vivo, owned by Vitol Asia Pte Ltd, had previously agreed to buy 40,000 barrels out of a 100,000-barrel cargo imported by Pertamina. However, the company later withdrew after lab tests found the fuel contained 3.5 percent ethanol.

Pertamina officials said the ethanol content was well below the regulatory threshold of 20 percent, but Vivo -- and another private retailer, BP, in a separate case -- argued the quality did not meet their requirements. Both retailers have since walked away from the deals.

The cancellations reflect ongoing tensions in Indonesia’s downstream fuel market, where the government has barred private retailers such as Vivo, BP, Shell, and ExxonMobil from importing fuel independently, requiring them instead to purchase supplies exclusively from Pertamina.

Government Assures Fuel Security
Despite the dispute, Bahlil stressed that national fuel supplies remain secure. “There is no reason to think that fuel availability is running low — we have sufficient stock for RON 92, RON 95, and RON 98,” he said, referring to specified octane numbers for fuel products.

He acknowledged that private stations may face temporary disruptions but insisted the overall market is stable. “Fuel is available. The perception that our supply is thinning is simply not true,” Bahlil added.

Private retailers previously negotiated conditions for buying Pertamina’s base fuel, including requirements for unblended base fuel without additives or dyes, independent quality inspections, and transparent pricing.

Pertamina has said it hopes retailers will return to the table for upcoming shipments.

Add as a preferred source on Google +