Shell Indonesia Addresses Fuel Scarcity at Gas Stations in Early 2025
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Jakarta – Shell Indonesia faced a challenging start to 2025, with fuel shortages reported at its gas stations across the country. The shortages impacted various fuel types, including Ron 92, Ron 95, Ron 98, and Solar CN54. Ingrid Siburian, president Director and Country Chair of Shell Indonesia, addressed the issue, explaining the factors that contributed to the scarcity.The situation prompted a hearing with the House of Representatives Commission XII at the Parliament Building in Jakarta on Wednesday, february 26, 2025, where Siburian provided a detailed account of the events.
The fuel scarcity at Shell gas stations in January 2025 stemmed from delays in the supply chain process, according to Ingrid Siburian. Speaking before the House of Representatives Commission XII, Siburian explained that these delays were “beyond ShellS control.” The issue highlighted the complexities of fuel supply and distribution in Indonesia, notably the reliance on timely import approvals.
The Import Approval Process
Siburian elaborated on the timeline of events leading up to the fuel shortages. Shell Indonesia submitted its 2025 commodity balance sheet request in September 2024. This request serves as the foundation for obtaining the necessary import approval (PI) to ensure a steady supply of fuel. The delay in receiving this approval proved to be a critical factor in the subsequent scarcity.
Recognizing the potential risks associated with delays in the approval process, Shell indonesia proactively communicated its concerns to relevant government ministries.
“After we submitted a commodity balance sheet request,we submit correspondence to the relevant ministries namely ESDM,conveying what potentials occur such as stock out if there is a delay in terms of supply.”
Despite these warnings,the import permit was not granted until January 23,2025. By this time, Shell’s fuel supply had dwindled to a critical level.
Critical Stock Levels
The late arrival of the import permit left Shell with severely depleted fuel reserves. Siburian stated that the company’s fuel supply was “almost empty,” with stock levels at only 25% when the import permit was finally received. This precarious situation necessitated immediate action to mitigate the impact on consumers.
“Our commodity balance sheet is getting January 20,2025 and our import approval can be January 23. But when we get a commodity balance,the gas station has experienced 25% stock out for several variants. We are trying to mitigate by dividing stock, so that in each region remains, not Until stock out.”
To manage the limited supply, Shell implemented a strategy of distributing the available stock across different regions to prevent complete stockouts in any single area. This measure aimed to ensure that fuel remained accessible to consumers, albeit in limited quantities.
Restoring Fuel Supply
Following the receipt of the import permit, Shell initiated the process of replenishing its fuel stocks at gas stations.Though, the logistical challenges of transporting and distributing fuel across a vast archipelago like Indonesia meant that it took time to restore supply to normal levels. shell worked to expedite the process, and by February 10, 2025, the company believed it had successfully replenished its stock.
The incident highlighted the lengthy bureaucratic processes involved in obtaining import permits, which can have significant consequences for fuel supply and distribution. Siburian emphasized the extended timeframe, noting that the company submitted its request in September 2024 but did not receive the necessary approval until january 2025.
“Licensing takes a long time from before, we have submitted September (2024), but we won January (2025).”
Conclusion
The fuel scarcity experienced at Shell indonesia gas stations in January 2025 underscores the importance of efficient supply chain management and timely import approvals in the energy sector. While shell took measures to mitigate the impact of the shortages, the incident serves as a reminder of the potential vulnerabilities in the fuel supply chain and the need for streamlined regulatory processes.
indonesia’s Energy Security: Unpacking the Shell Fuel Crisis and its Global Implications
A minor delay in import approvals can cripple a nation’s economy. The recent fuel crisis in Indonesia, impacting Shell operations, serves as a stark warning about global energy vulnerabilities. We spoke with Dr. Aris Ananta, a renowned expert in international energy policy and supply chain resilience, to dissect the situation and explore solutions.
World-Today-News.com (WTN): dr. Ananta, the fuel shortages experienced by Shell Indonesia highlighted the critical role of timely import permits in ensuring energy security. Could you elaborate on how these permits function within Indonesia’s energy sector and their broader implications?
Dr. Ananta: Absolutely. Indonesia’s important reliance on imported fuels—notably gasoline, diesel, and other refined petroleum products—makes the import permit process a cornerstone of its energy security.These permits are essentially gatekeepers to accessing international fuel markets. Delays, as witnessed in the Shell case, directly translate to fuel shortages at the pump, impacting both businesses and consumers. This emphasizes the crucial need for streamlined, transparent regulatory processes within Indonesia’s energy governance structure to maintain a stable balance between supply and demand. The Indonesian experience reflects a broader global challenge related to the vulnerabilities in nations that heavily rely on imported energy—making them susceptible to bureaucratic delays and volatile international supply chain dynamics.
WTN: The Shell incident underscored a potential breakdown in communication between the company and Indonesian government agencies. How can improved communication and collaboration prevent future crises?
Dr. Ananta: The situation highlighted the critical need for enhanced communication and proactive collaboration between energy companies and government regulatory bodies. While Shell’s proactive communication to relevant ministries is laudable, it proved insufficient, suggesting that established frameworks for transparent communication and information-sharing are urgently needed. These frameworks ought to include clearly defined timelines for permit processing, regular updates on application status, and mechanisms for promptly addressing concerns or potential bottlenecks. Effective collaboration also requires incorporating industry feedback into the regulatory decision-making process to create practical solutions and avert future disruptions. Including industry experts in the policy design from the beginning ensures practical solutions.
WTN: Shell’s fuel reserves dipped to a dangerously low 25% before the import permit was granted.This raises concerns about inventory management practices in volatile energy markets. What best practices can energy companies employ to mitigate such risks?
Dr. Ananta: Maintaining adequate fuel reserves is absolutely paramount to mitigate unforeseen disruptions. A 25% stock level is critically low. Effective inventory management in a volatile global energy market requires a comprehensive and multi-faceted strategy:
Diversify supply Sources: Reduce dependence on single suppliers or import routes to lessen the impact of any single disruption.
Enhance Forecasting and Analytics: Utilize data-driven predictions to anticipate potential supply chain challenges and adjust inventory levels accordingly. Consider using AI and machine learning to predict energy needs and fluctuations.
Strategic Stockpiling: Maintain sufficient reserves to navigate delays or unexpected market volatility. This also requires a robust and adaptable storage infrastructure.
Develop Contingency Plans: Create detailed plans to manage disruptions, including alternative fuel sourcing, redistribution strategies, and clear communication protocols for consumers.
WTN: beyond immediate crisis management, what systemic changes could enhance Indonesia’s energy resilience and reduce its vulnerability to fuel shortages?
Dr. Ananta: This crisis demands a complete reassessment of Indonesia’s energy policies. Strengthening domestic fuel production and diversifying energy sources are vital long-term goals. This involves investing in renewable energy technologies such as solar, wind, and geothermal power, thereby reducing reliance on imported fossil fuels. Beyond securing energy supplies, the modernization of the regulatory framework is critical. Streamlining the import permit process, while maintaining necessary checks and balances against fraud or abuse, woudl be a significant betterment, along with greater clarity and clear communication channels to prevent future crisis situations.
WTN: What global lessons can be drawn from Indonesia’s experience to bolster energy supply chain resilience worldwide?
Dr. Ananta: Indonesia’s fuel crisis serves as a stark reminder of the interconnectedness of global energy markets and the crucial role of efficient supply chain management and effective regulatory processes. The need for proactive planning, robust communication, diverse sourcing, and adequate emergency reserves is no longer optional—it is fundamental to energy security. This particular crisis should spur policymakers and energy companies to improve supply chain resilience and invest in effective methods for risk management.
WTN: Thank you, Dr. Ananta, for your insightful analysis. Readers, what are your thoughts on this critical issue? Share your comments below and join the discussion on social media using #IndonesiaFuelCrisis #EnergySecurity #SupplyChainResilience.