Reformulating Margin Adequacy to Strengthen the Sustainability of Fuel Stations as Energy Distribution Agents in Indonesia

DOI

10.2991/978-94-6463-944-5_19How to use a DOI?

Keywords

Fuel Station Sustainability; Indonesia Energy; fuel pricing

Abstract

The financial evaluation of fuel stations or SPBU in Indonesia reveals that the current profit margin is insufficient to ensure business sustainability as energy distributors. Financial indicators such as the Internal Rate of Return (IRR) and Payback Period (PP) indicate the need for regulatory reform to sustain energy resilience through a fairer margin structure. This reformulation must consider regional economic burdens, particularly employee costs influenced by the City/Regency Minimum Wage (UMK), and the need to expand energy access in remote, outermost, and leading areas. Using a multidisciplinary approach that integrates economic analysis, regional mapping, and legal assessment, the study explores determinants of the PP for SPBU. The findings show that UMK levels significantly affect PP, with higher UMK associated with longer payback durations, while more stable market types have shorter PP. Based on these insights, three margin reformulation pathways are proposed: (1) a financial pathway, which increases margins uniformly; (2) a spatial pathway, which adjusts margins based on regional economic burdens; and (3) a mixed pathway, which integrates both approaches. Alternatively, incentive-based margins can be provided for SPBU in remote regions to enhance energy access. However, the implementation of spatial and mixed approaches is constrained by the lack of regulations defining UMK classifications and Commercial Distribution Areas (WDN) as bases for margin calculation. In the short term, the most practical options are a uniform margin increase through the financial pathway or targeted incentives for remote SPBU.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Marsudi Triatmodjo
AU  - Yudistira Permana
AU  - Agung Satriyo Nugroho
AU  - Yano Pradana
AU  - Taufiq Adiyanto
AU  - Kefas Christiawan
PY  - 2025
DA  - 2025/12/26
TI  - Reformulating Margin Adequacy to Strengthen the Sustainability of Fuel Stations as Energy Distribution Agents in Indonesia
BT  - Proceedings of the International Conference on Sustainable Energy: Toward Energy Transition and Net-Zero Emission (ICOSE 2025)
PB  - Atlantis Press
SP  - 256
EP  - 289
SN  - 3005-155X
UR  - https://doi.org/10.2991/978-94-6463-944-5_19
DO  - 10.2991/978-94-6463-944-5_19
ID  - Triatmodjo2025
ER  -