Commotion as Shell Sells All Gas Stations in Indonesia, ESDM Comments

KatadataOTO – Shell Indonesia, as a subsidiary of Shell, has approved the change of ownership for its SPBU (Public Fuel Filling Station) business in the country.

The transfer of business ownership, according to the Minister of ESDM (Energy and Mineral Resources), will not disrupt other investments such as oil and natural gas in the country.

The Ministry of ESDM emphasized that Shell is not closing all its business lines, but selling. 

“So what is the impact (on downstream investment)? It will continue to run,” said Bahlil Lahadalia, Minister of ESDM, as quoted from Antara, Friday (23/05).

Photo : KatadataOTO

According to Bahlil, the transfer of ownership of Shell's gas stations is a normal corporate action. This will not disrupt the availability or distribution of BBM (Fuel Oil) from Shell to its customers in Indonesia.

He also emphasized that Shell is a private entity. The government does not have the right to restrict the company from carrying out corporate actions.

“We must respect every private company that carries out corporate actions,” Bahlil affirmed.

Based on an official statement published by Shell today, it was mentioned that the buyer of Shell's gas stations will be a joint venture between Citadel Pacific Limited and Sefas Group.

However, this is said not to include Shell's growing lubricant business in the country. Operations at Shell's gas station network will continue as usual until the ownership transfer process is complete, approximately next year.

Photo : KatadataOTO

“The Shell brand will remain in Indonesia through a brand license agreement, fuel products will be supplied by Shell, and customers will continue to have access to high-quality fuel products,” read Shell's official statement, quoted on Friday.

For your information, negative rumors regarding Shell Indonesia have been circulating since last year. In 2024, they even closed nine Shell gas station branches in the Medan area, North Sumatra.

The decision was made as part of the implementation of Shell's global strategy. Overall, the value of its partnership investment is in the range of Rp 1.5 billion to Rp 7 billion per location.