Jakarta. Energy and Mineral Resources Minister Bahlil Lahadalia dismissed claims that Shell’s sale of its entire fuel retail network in Indonesia reflects a worsening investment climate in the country’s energy sector.

Shell confirmed the sale of about 200 gas stations, including 160 company-owned sites, to a joint venture between Citadel Pacific Limited and Indonesia’s Sefas Group. The transaction, expected to close next year, forms part of Shell’s global strategy to streamline its downstream business.

Bahlil downplayed concerns about the sale, stressing that Shell is transferring ownership, not shutting down operations. “They are only selling, not closing the business. It’s just a change of company ownership,” he said at the Ministry’s office in Jakarta.

He described the deal as a routine business-to-business corporate transaction and urged respect for the rights of private companies operating in Indonesia. “Since they are not a state-owned enterprise, we must respect every private company’s rights,” Bahlil added.

Shell also assured that the sale will not impact its lubricants business in Indonesia, which includes a 300-million-liter-per-year blending plant and a 2,000-ton-per-year grease production facility under construction in North Jakarta. The company also operates a fuel terminal in West Java’s Gresik.

Throughout the sale process, all fuel stations will continue normal operations, with the Shell brand remaining in Indonesia under licensing agreements. Shell will maintain fuel supply to its partners and customers.

The move reflects Shell’s broader commitment to reposition its downstream portfolio, aligning with strategic priorities outlined during its Capital Markets Day.

Add as a preferred source on Google +