The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, responded to the issue stating that Shell Indonesia plans to close all its network of Gas Stations (SPBU) in the country.
Bahlil assured that until now there has been no official information regarding the plan. He mentioned that this news is likely just speculation.
“I haven’t heard about that.”
“There has been no discussion regarding the closure of Shell gas stations in Indonesia,” Bahlil when met at Balai Kartini, Jakarta, Monday (25/11/2024).
Minister Bahlil add that Shell Indonesia’s business is expected to remain stable. “It’s just a rumor, God willing, everything is fine,” he said.
The Issue of Shell Gas Station Closures and Fuel Business Competition
The news about the closure of the Shell gas station network previously emerged from the statement of the Chairman of the Investment Committee of the National Oil and Gas Companies Association (Aspermigas), Moshe Rizal. According to him, Shell is facing a tough challenge due to market dominance by Pertamina.
“The majority of the gas station market is dominating by Pertamina. I’m not surprised that Shell is having difficulty growing. The competition here is very tough,” said Moshe.
He also revealed that globally, Shell seems to be shifting its business focus from the downstream sector, such as fuel distribution, to the upstream sector.
Rebuttal from Shell Indonesia Management
Shell Indonesia management firmly denied the rumor that the company would close its entire network of gas stations. Vice President Corporate Relations Shell Indonesia, Susi Hutapea, stated that the information was not true.
“The information circulating regarding Shell’s plan to close all gas stations in Indonesia is not true. We cannot comment on market speculation,” said Susi in an official statement on Sunday (24/11/2024).
He emphasized that Shell Indonesia remains committed to serving customers through the existing gas station operations. “We remain focused on the operational activities of the gas stations to meet our customers’ needs,” he added.
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