Motorists in Central and East Kalimantan are facing a familiar and frustrating sight: lines of vehicles stretching far beyond the boundaries of petrol stations, with some drivers waiting hours for a few liters of fuel. What began as a localized disruption in Riau last week has now cascaded into other regions, leaving residents in Palangkaraya and Balikpapan scrambling to secure basic transport needs.
The situation has shifted from a mere inconvenience to a regulatory crisis in Palangkaraya, where city officials have stepped in to ration fuel to prevent total depletion. In Balikpapan, the frustration has boiled over into public protest, as truck drivers—the backbone of the region’s logistics—warn that the lack of subsidized diesel is threatening their livelihoods.
For those following the markets, this isn’t just a story of poor logistics. It is a snapshot of the tension between global energy volatility and domestic social stability. As the state-owned energy giant Pertamina adjusts prices to mirror surging global oil costs—driven largely by instability in the Middle East—the pressure on Indonesia’s complex subsidy system is becoming visible at the pump.
The Rationing of Palangkaraya
In Palangkaraya, the shortage has hit both subsidized and non-subsidized tiers. Several Pertamina-operated stations have completely run out of Pertamax, the non-subsidized RON92 fuel. The result has been a chaotic scene of vehicles spilling onto main roads, with some motorists leaving empty-handed after an hour of waiting.
To curb panic buying and ensure a more equitable distribution, Mayor Fairid Naparin issued a circular on May 5 that effectively places the city on a fuel ration. The policy targets the two most common fuel types: Pertalite (subsidized) and Pertamax (non-subsidized).
The mayor’s directive is stringent. Beyond daily limits, the city is now cracking down on “fuel hoarding” and modification. Station operators have been instructed to refuse service to any vehicle with an enlarged or modified fuel tank. The use of jerrycans or drums for the purpose of resale is now strictly banned, with narrow exceptions granted only to the agriculture and fisheries sectors, provided they have official recommendation letters.
| Vehicle Type | Pertalite (Subsidized) Limit | Pertamax (Non-Subsidized) Limit |
|---|---|---|
| Private Cars | 200,000 IDR (~20 Liters) | 400,000 IDR (~32.5 Liters) |
| Motorcycles | 50,000 IDR (~5 Liters) | 100,000 IDR (~8 Liters) |
In a move to protect the subsidy for the poor, Mayor Naparin also barred government vehicles from using Pertalite and biosolar, though he carved out exemptions for essential public services, including ambulances, hearses, and waste transport vehicles.
Diesel Distress in Balikpapan
While Palangkaraya grapples with gasoline, Balikpapan is facing a diesel crisis. On May 4, the city’s Legislative Council (DPRD) became the site of a protest involving hundreds of students and truck drivers. The core of their grievance is the scarcity of subsidized diesel, which is critical for the heavy transport industry in East Kalimantan.
Mahyudin, a representative for the truck drivers, described a dire situation where some drivers have waited up to three days to refuel. The bottleneck is largely structural: out of 19 fuel stations in the city, only two are reportedly supplying subsidized diesel. The protesters are demanding a wider distribution of diesel outlets and a shift in operating hours, urging stations to remain open until at least 10 p.m. Or operate 24 hours a day to ease the congestion.
The Gap Between Local Reality and National Data
There is a stark disconnect between the scenes at the pumps and the rhetoric coming from Jakarta. Both Pertamina and the Ministry of Energy and Mineral Resources have maintained that national fuel stocks are secure.
Energy and Mineral Resources Minister Bahlil Lahadalia stated on April 27 that Indonesia’s fuel supply remains stable and that all products are above the national minimum standard, despite the turbulence in Middle Eastern oil markets. Pertamina has echoed this, attributing the queues in Riau to a “perfect storm” of increased holiday travel and panic buying triggered by rumors of scarcity.
From a business perspective, the “panic” is often a rational response to price signals. Earlier this week, Pertamina raised prices for several non-subsidized products. When the price of non-subsidized fuel jumps, consumers naturally migrate toward subsidized options like Pertalite and biosolar. This sudden shift in demand can overwhelm stations that aren’t equipped for the surge, creating the very shortages that trigger further panic buying.
In Palangkaraya, the company pointed to “distribution delays” rather than a lack of stock, while in Balikpapan, they acknowledged that the limited number of diesel-providing stations was the primary cause of the bottlenecks.
Why This Matters for the Region
Indonesia’s reliance on fuel subsidies is a delicate balancing act. While subsidies keep transport costs low for the average citizen, they leave the state vulnerable to global price spikes. When global crude prices rise due to conflict, the government must either increase the subsidy burden on the national budget or allow non-subsidized prices to rise—which, as seen this week, can lead to localized instability.
The spread of shortages from Riau to Kalimantan suggests that the distribution network is struggling to handle these demand shifts in real-time. For a country as geographically fragmented as Indonesia, any failure in the “last mile” of fuel delivery can quickly escalate into social unrest, as evidenced by the protests in Balikpapan.
The next critical indicator will be the upcoming monthly price review for non-subsidized fuels. Market analysts will be watching to see if Pertamina further adjusts prices to align with global benchmarks, which could either stabilize demand for subsidized fuels or trigger a new wave of panic buying across other provinces.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice.
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