Government Clarifies Pertamina’s Dominance in Indonesia’s Aviation Fuel Supply

JAKARTA, RAKYAT NEWS— The Coordinating Ministry for Maritime Affairs and Investment has confirmed that the majority of aviation fuel (avtur) supplied at Indonesian airports comes from PT Pertamina Patra Niaga. This situation arises from a special assignment given to Pertamina by the government.

According to Rachmat Kaimuddin, Deputy for Infrastructure and Transportation at the ministry, Pertamina not only supplies fuel for busy routes but also for less trafficked ones. He noted that while a uniform pricing system isn’t in place, efforts are made to ensure prices across regions remain reasonable.

The government is currently evaluating a multi-provider supply system for avtur to help reduce costs.

“We need to ensure that suppliers beyond Pertamina serve all routes fairly to maintain competitiveness,” he stated.

The Oil and Gas Downstream Regulatory Agency (BPH Migas) has mentioned that other licensed companies for avtur supply include PT AKR Corporindo Tbk, PT Dirgantara Petroindo (AKR-BP), and PT Fajar Putra Indo, though there has been little impact from these providers thus far.

Transportation Minister Budi Karya Sumadi previously accused BPH Migas of contributing to high airfare prices by protecting Pertamina’s monopoly in the domestic avtur market.

He criticized the requirement for operators to have international experience as unnecessary for domestic flights.

Currently, the price of avtur in Indonesia remains higher than in other countries, where multiple suppliers exist. Saleh Abdurrahman, a member of BPH Migas, defended the agency, asserting that they uphold principles of fair competition and transparency, and have opened market access to qualified businesses in avtur supply. (Uki Ruknuddin)