Jakarta. Private retailers Vivo and BP-AKR have agreed to advance the fuel import negotiations to a technical level, according to the trading subsidiary of the state-run energy firm Pertamina Patra Niaga, thus marking some progress after the talks stalled.

Indonesia’s privately owned gas stations have been running dry over the past few months. The government has urged the companies to import base fuel from Pertamina instead of letting private retailers get more supplies from abroad. A base fuel does not contain additives. However, Vivo and BP-AKR’s joint venture APR withdrew from the negotiations following concerns over the ethanol content, but Pertamina Patra Niaga revealed that they might have changed their minds.

“Vivo and BP-AKR have agreed to advance the discussions to the technical stage,” Pertamina Patra Niaga’s acting corporate secretary Roberth MV Dumatubun said in Jakarta on Monday.

According to Roberth, the next round of talks will focus on drafting a declaration that guarantees good corporate governance as well as regulatory compliance with anti-trust, no money laundering, and anti-bribery policies. Pertamina will also have the private retailers submit how much base fuel they need. The negotiations will then move on to an agreement on the products’ specifications, key terms, and the general terms of the partnership.

"Pertamina will adjust the product specifications to suit the needs of each retailer. We will also provide detailed key terms, including the appointment of a joint surveyor, for confirmation,” Roberth said.

If they all reach a consensus, the process will then proceed to procurement. Once the tender winner is decided, they will discuss the commercial aspects and conduct joint inspections before the base fuels make their way to the private retailers around the third week of this month. Roberth said that Pertamina would make sure to apply a single system in the procurement process to avoid any duplication of shipments.

Another private retailer, Shell, has been unable to continue the discussions as the company still needs to coordinate with its headquarters. ExxonMobil only intends to negotiate for the November supplies as its current fuel stocks are still sufficient, according to Roberth.

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