Is it true that the Pertalite era is slowly ending?

At several gas stations in Jakarta, Pertalite has been replaced by Green 95. However, Pertamina continues to ensure that the distribution of Pertalite is safe.

KOMPAS/PRIYOMBODO

Pertamax Green 95 uses a purple nozzle code as seen at gas station 31.128.02 MT Haryono, South Jakarta, Monday (6/5/2024).

Fuel oil or BBM type Pertalite in the last few days has been widely discussed on social media because it is said to be removed. This news immediately raised concerns among some residents, despite the fact that the cheapest and most widely consumed type of gasoline is still often found at various public fuel stations or gas stations.

Based on observations at a number of gas stations in Jakarta and surrounding areas, Monday (6/5/2024), most gas stations were still selling Pertalite. However, there are several gas stations that are starting to eliminate fuel with an octane rating (RON) of 90 and replace it with the Pertamax Green 95 product, the newest product of Pertamina which launches in 2023 with limited marketing.

For example, the replacement occurred at Pertamina gas station 34.116.08 at Pos Pengumben, West Jakarta. There are no longer any dispensers serving Pertalite purchases. At the entrance and exit of the gas station, a banner is also displayed that says "Fuel Pertamax Green is available.

"Since April 4 (2024) we haven't sold Pertalite, replaced Pertamax Green 95," said one gas station officer/operator.

A similar situation also exists at the Pertamina COCO gas station 31.114.01 on S Parman Street, West Jakarta, which no longer sells Pertalite and has been replaced by Pertamax Green 95 since February 2024. Personnel direct customers to other gas stations if they inquire and only want to fill up with Pertalite. The nearest gas station that still sells Pertalite is located on KS Tubun Street, around 1.2 kilometers away from the Coco gas station.

Currently there are 63 Pertamax Green outlets in Jabodetabek and East Java.

When confirmed regarding the replacement of Pertalite with Pertamax Green 95 at several gas stations in Jakarta, PT Pertamina Patra Niaga Corporate Secretary Irto Ginting emphasized that his party was still distributing Pertalite according to the assignment given by the government. However, his party stated that there was indeed the development of the Pertamax Green 95 outlet as Pertamina's step to support the decarbonization of Indonesia.

"Since it was marketed, the increase in demand for Pertamax Green among consumers has continued to grow, although not yet large. This encourages Pertamina to increase the provision of these outlets. "Currently there are 63 Pertamax Green outlets in Jabodetabek and East Java," he said.

Although still distributing Pertalite, not all gas stations have been serving subsidized/compensation fuel, including Pertalite, which is a special assignment fuel type (JBKP). "There are indeed several gas stations that only sell non-subsidized fuel," said the Vice President of Corporate Communication for PT Pertamina (Persero), Fadjar Djoko Santoso.

Pertamax Green 95, which is a mixture of gasoline with 5 percent ethanol/E5 (bioethanol with sugar cane molasses as its raw material), was launched by Pertamina in July 2023. Initially, the product was only marketed in a limited number of 17 gas stations in Jakarta and Surabaya. After that the marketing developed. Currently, this product is available at 63 Pertamina outlets.

Previously, in August 2023, in a hearing with Commission VII DPR RI, Director Utama Pertamina Nicke Widyawati said that his party planned to replace Pertalite with Pertamax Green 92 or mixing RON 90 gasoline with ethanol 7 percent (E7) in 2024. Then it was stated that this was still in the internal review stage at Pertamina.

Also read: Another Chapter of the Pertalite Restriction Discourse

In the meeting, Nicke also mentioned that to fulfill the supply needs, ethanol procurement can be done by importing first until domestic bioethanol investment, which is also a government program, is implemented. According to him, it is not a problem because it is similar to replacing gasoline imports with ethanol, but emissions-wise, it will be better.

The government also said that studies related to Pertamax Green 92 were still at Pertamina's internal stage. "The study of RON 90 + ethanol to RON 92 was carried out by ITB (Bandung Institute of Technology) and Pertamina. (That) is to obtain technical data," said Director of Bioenergy at the Directorate General of New, Renewable Energy and Energy Conservation at the Ministry of Energy and Mineral Resources (ESDM) Edi Wibowo.

KOMPAS/PRIYOMBODO

Officers fill Pertalite fuel oil at SPBU 31.128.02 MT Haryono, South Jakarta, Monday (6/5/2024).

Excise tax exemption

The development of bioethanol-based vegetable fuel (BBN) is part of the government's decarbonization program towards a net zero emissions (NZE) by 2060. Previously, Presidential Regulation No. 40 of 2023 was also issued regarding the Acceleration of National Sugar Self-Sufficiency and the Provision of Bioethanol as BBN (Biofuel).

One of the points in the presidential regulation is the increase in bioethanol production derived from sugarcane plants, at least by 1.2 million kiloliters (KL). In addition, the government entrusted PT Perkebunan Nusantara III (Persero) to carry out investment plans, at least in the form of plant revitalization, construction of new sugar factories, and construction of bioethanol plants.

Recently, the government has also formed a Task Force for Accelerating Sugar and Bioethanol Self-Sufficiency in Merauke District, South Papua Province. The formation is stated in Presidential Decree of the Republic of Indonesia Number 15 of 2024 signed by President Joko Widodo on April 19, 2024.

One of the obstacles to the development of bioethanol is the imposition of taxes or state levies on ethanol. Currently, efforts are being made to exempt ethanol used for fuel, not food/beverages or raw materials for medicine from taxes. If tax exemption is granted, it is hoped that the demand for bioethanol will increase.

Edi Wibowo stated that the exemption of ethanol tax for fuel is still in process. "Pertamina is still waiting for an industrial business permit from the Ministry of Industry as a condition for the tax exemption," he said.

KOMPAS/AGUS SUSANTO

The atmosphere at the public fuel station in the Tebet area of South Jakarta on Wednesday (26/7/2023). PT Pertamina Patra Niaga officially introduced Pertamax Green 95 as a new vehicle fuel product.

Transition efforts

The researcher at the Energy and Mining Law Study Center (Pushep), Akmaluddin Rachim, believes that the expansion of BBN products should be included in the process of transitioning from Pertalite, even though the distribution of the compensation fuel is still carried out by Pertamina. The shift from Pertalite to Pertamax Green 95 at some gas stations is similar to the slow transition from Premium to Pertalite.

It is undeniable that the increase is also for the purpose of environmental sustainability. "However, the country must also ensure the availability of affordable energy (including fuel) for the community so that if there is a transition, it must be carefully calculated and studied for the future. Equally important is how to socialize it well to the community. Everything must run smoothly," he said.

Also read: Abolition of Premium and Pertalite Needs to Consider Community Economic Conditions

He also highlights the possibility of fulfilling ethanol through imports while waiting for the development of the domestic bioethanol industry, which needs to be carefully addressed. Moreover, the government's sugar and bioethanol self-sufficiency program, in the long run, actually aims for independence in the sugar and bioethanol commodity sector.

"Do not let ethanol imports actually show discontinuity in various energy sector programs. Also, we must see what the impact will be on the state's finances. However, policies must be synchronized with each other," he said.

KOMPAS

President Joko Widodo targets sugar self-sufficiency for domestic consumption and industry in the next five years. This was conveyed during a visit to the bioethanol factory of PT Energi Agro Nusantara in Mojokerto, East Java, on Friday (4/11/2022).

However, at the price of Rp 10,000 per liter, Pertalite remains the preferred fuel for the community. The Downstream Oil and Gas Regulatory Agency (BPH Migas) has set the Pertalite quota for 2024 at 31.7 million kiloliters, which is lower than 2023's 32.5 million kiloliters. Meanwhile, the current price of Pertamax Green 95 is set at Rp 13,900 in DKI Jakarta and East Java.

The step of replacing Pertalite with higher quality and environmentally friendly fuel needs to be carefully executed and socialized to the public. In addition, it is the responsibility of the government and stakeholders to ensure that subsidized fuel is distributed to the appropriate target groups and not neglected.