Welcome Guest   |  Login   |   Signup
JG Logo
Thu, May 24, 2012
Archive Search

Pertamina Asks Jakarta for Protection Against Rivals
January 17, 2012

Share This Page
2
3
0
7
Share with google+ :


Post a comment
Please login to post comment

Comments

SirAnthonyKnown-Bender
3:42pm Jan 21, 2012

"Another form of protection, she said, would be ensuring that Pertamina’s Pertamax, one of its high-octane products, remained cheaper than competitors."

I don't know about "remained". It isn't cheaper than gas from the foreign gas stations, it's more expensive.


blightyboy
3:08pm Jan 21, 2012

The last bleating cry from the most corrupt of all Indonesian state run companies. Badly run for years. No more than a piggy bank. Sell it off to private companies to manage efficiently and competitively.

Jeanne Hachette
8:42pm Jan 18, 2012

Pertamina gasoline is crap, this is why people having expensive cars go to Shell or Total. Karen, come on, give us a break and stop crying.


nonredneck
8:41pm Jan 18, 2012

Seeking protection???!!!???!!!??? If there was no competition, pertamina gas pump won't look as nice as it currently is. LET THERE BE COMPETITION!!!

shytallnight
8:05pm Jan 18, 2012

So, instead of subsidising the fuel for they consumer, they propose subsidising the cost to the manufacturer.

Absolute genius, replace the current subsidy with another.

Indonesian state oil and gas company Pertamina is seeking government protection as it braces for the impact of a government policy banning private cars from using subsidized fuel, which makes up a large part of its business.

The company wants protection for its non-subsidized fuel business so it can compete with private foreign firms.

Pertamina’s president director, Karen Agustiawan, said on Tuesday that government protection was necessary for state firms.

She said the protections could include requiring private sellers to buy high-octane gasoline from Pertamina, or only allowing competitors to import fuel when Pertamina ran out of its high-octane gasoline.

“Other countries do the same thing,” she said.

Another form of protection, she said, would be ensuring that Pertamina’s Pertamax, one of its high-octane products, remained cheaper than competitors. She did not offer details on how this would be done.

Karen also criticized the government’s policy allowing foreign oil companies that do not have refineries in Indonesia to enter the market.

She said that in Malaysia foreign companies were only allowed to open gas stations after building refineries in the country. “But here companies without refineries can operate gas stations,” she said.

France’s Total Indonesie and Malaysia’s Petronas both operate gas stations in Indonesia without having refineries here.

Karen said the government needed to protect Pertamina as it undertook the costly construction of two refineries, one in Balongan, West Java, and the other in Tuban, East Java.

The cost of the refineries is estimated at around $20 billion. Both will have a capacity of 600,000 barrels a day, and will be able to produce 7.79 million kiloliters of high-octane gasoline annually.

Once completed, Pertamina will own a total of seven refineries and will have the capacity to produce 22.8 million kiloliters of high-octane gasoline.

Asked about the plan to ban private cars from using subsidized fuel, Karen said Pertamina was prepared. She said 90 percent of its 3,000 gas stations in Java and Bali were ready to sell Pertamax.

Antara