Socio Today
Jakarta — Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia has pointed to a widespread consumer shift from non-subsidized fuel to subsidized alternatives, compounded by illegal hoarding practices, as the root causes behind the severe and disruptive fuel queues that recently crippled Makassar, South Sulawesi. The crisis, which peaked over a three-day period, caused massive traffic gridlocks, significantly increased waiting times at public refueling stations, and forced local authorities to implement emergency mitigation strategies.
Addressing the public and stakeholders during the Innovation Technology for Social and Environmental Awards (InTechSEA) event held in Jakarta, Minister Bahlil provided a candid assessment of the underlying market distortions. According to the minister, a significant portion of motorists who traditionally relied on non-subsidized commercial fuel have actively altered their purchasing behaviors, migrating toward government-subsidized variants to cut down on personal transportation costs amid economic pressures. This unexpected demand surge severely strained the pre-allocated distribution quotas designated for the region.
Compounding the supply strain is a more illicit driver: large-scale hoarding orchestrated by opportunistic individuals. Bahlil highlighted alarming findings brought to light by local law enforcement agencies, which revealed that numerous vehicles—ranging from private passenger cars to heavy-duty commercial trucks—had undergone extensive, illegal structural modifications. These vehicles were fitted with clandestine, oversized internal fuel tanks capable of holding anywhere from 700 liters to an entire metric ton of fuel in a single fill.
Expressing deep frustration over these systematic violations, the ESDM minister did not mince words regarding the magnitude of the enforcement challenge. "The situation we are witnessing right now involves a clear shifting phenomenon, where individuals who previously did not use subsidized oil are now transitioning to it," Bahlil stated during his address. Highlighting the audacity of the black-market operators, he added, "Beyond that, there are cars and trucks that construct massive tanks holding up to 700 liters or even 1 ton of fuel. In my heart, I wonder, what kind of model is this? If it continues like this, even if we waited for the Minister of ESDM to descend directly from the heavens, the situation would remain exactly the same."
Anatomy of the Crisis: Timeline and Traffic Disruption
The fuel distribution crisis in Makassar did not materialize overnight, but rather escalated rapidly over a critical 72-hour window leading up to mid-September 2026. During this period, vehicle queues at numerous public fueling stations (SPBU) across the city swelled exponentially, exceeding normal operational volumes by more than 50 percent.
The immediate casualty of the massive vehicle lineups was the city’s urban mobility. Major thoroughfares experienced severe bottlenecks, choking daily commutes and freight logistics alike. One of the most severely impacted points was the strategic corridor along Jalan AP Pettarani, where snaking lines of cars and commercial vehicles spilled out of station premises and directly onto active roadways, bringing traffic to a near standstill during morning and evening rush hours.
Local transportation authorities and traffic police departments were forced to intervene dynamically to prevent total gridlock. By evaluating the ground realities, the regional government, in coordination with law enforcement and energy sector stakeholders, formulated a multi-pronged emergency response framework. Among the primary measures enacted was the implementation of a strict odd-even license plate restriction policy at local SPBU outlets to regulate the volume of private vehicles seeking access to subsidized fuel on alternating days.
Furthermore, to alleviate daytime congestion on major urban arteries, authorities issued mandatory scheduling mandates for heavy commercial vehicles. Trucks and buses were prohibited from refueling during peak daylight hours, restricted instead to nighttime operations. This operational shift helped clear daytime roadways, allowing passenger vehicles and public transport to navigate the city with significantly fewer obstructions.
Collaborative Interventions and Restoration of Normalcy
In response to the escalating crisis, the Ministry of ESDM immediately mobilized a cross-sectoral task force. Working in tandem with the South Sulawesi provincial government and regional police apparatus, federal authorities initiated a comprehensive crackdown on illicit distribution channels while simultaneously addressing supply-side deficiencies.
Minister Bahlil confirmed that aggressive oversight by law enforcement agencies successfully identified and neutralized several key nodes of illegal hoarding. By clamping down on modified vehicles and intercepting black-market distribution networks, the authorities managed to restore integrity to the supply chain.
Simultaneously, state-owned energy giant PT Pertamina stepped in with immediate operational adjustments. Pertamina drastically ramped up supply volumes destined for the Makassar region, pumping in additional fuel reserves to replenish depleted underground storage tanks at local stations. Additionally, the state energy enterprise extended operating hours at critical retail outlets, allowing them to run round-the-clock operations to clear the backlog of waiting consumers.
By the morning of Monday, September 15, 2026, these concerted interventions yielded tangible results. Field observations at major distribution hubs, including the prominent SPBU station along Jalan AP Pettarani, confirmed that normalcy had largely returned. Queues had receded dramatically, with only a modest dozen or so vehicles waiting at any given time, enabling station attendants to process transactions swiftly and efficiently.
"Alhamdulillah, the queues have now begun to subside," Bahlil noted with relief. "We will continue to implement critical measures moving forward to ensure that state-funded subsidies remain strictly targeted toward those who genuinely need them."
Broader Implications for National Energy Distribution
The Makassar incident serves as a glaring micro-level illustration of a macro-level vulnerability plaguing Indonesia’s national energy subsidy framework: the persistent leakage of state-budgeted funds to unintended recipients. Subsidized fuels—such as Pertalite and Solar—are legally earmarked for economically vulnerable populations and specific commercial sectors defined by strict regulatory parameters. However, price differentials between subsidized and non-subsidized products consistently incentivize market arbitrage, prompting both middle-to-upper-class motorists and industrial black-market syndicates to exploit systemic loopholes.
Energy economists and policy analysts point out that relying solely on reactive policing—such as chasing modified trucks and managing traffic queues—offers only temporary relief. Without a structural overhaul of the distribution architecture, such crises risk recurring in other high-density urban centers across the archipelago. The primary long-term solution heavily championed by regulators is the implementation of a digital, data-driven tracking system—such as the mandatory registration of vehicles via digital applications prior to purchasing subsidized products—to verify consumer eligibility at the point of sale.
The events in Makassar also underscore the delicate balance required between maintaining public order and ensuring energy security. When municipal traffic infrastructure is paralyzed by fuel shortages, the economic ripple effects extend far beyond logistical delays, touching productivity losses, heightened logistics costs, and public frustration.
As the Ministry of ESDM, regional administrations, and law enforcement evaluate the lessons learned from the South Sulawesi disruption, the mandate moving forward remains clear. Strengthening inter-agency surveillance, enforcing stringent penalties against fuel smuggling and modification syndicates, and accelerating the deployment of targeted subsidy mechanisms are paramount. Only through such comprehensive reforms can the government safeguard fiscal allocations, deter illegal exploitation, and guarantee uninterrupted, equitable energy access for the citizens who truly depend on it.
