•    HOME   
•    NEWS   
•    BUSINESS   
•    INTERNATIONAL   
•    TECH   
•    SPORTS   
•    LIFE & TIMES   
•    OPINION   
•    MY JAKARTA   
•    BLOGS   
•    EYEWITNESS   

Total Oil Indonesia, a subsidiary of French oil and gas company Total Oil, has earmarked up to $40 million to more than double its fuel station business, a senior executive said on Wednesday.

It plans to build 15 to 20 more stations this year with at a cost of $30 million to $40 million, Asif Iqbal, vice president of retail and sales, said on Wednesday.

Total Indonesia, which opened its first fuel station in 2009, now has 13.

Asif said the company had been waiting to see growing demand in non-subsidized fuel. Despite Indonesia’s rising per capita incomes, drivers still prefer to use the cheaper low-octane and subsidized gasoline, Premium.

In a bid to address soaring subsidy bills, the government has been touting a plan to restrict private cars from using the subsidized fuel. Motorcycle drivers and public transportation vehicles would not be affected.

Should the plan proceed, private car users will have to fill up with non-subsidized fuel, which is almost double the price of Premium.

Total sells high-octane gasoline under the names Performance 92 (RON 92) and Performance 95 (RON 95). It also sells non-subsidized diesel fuel called Performance Diesel.

“We have been preparing for this [Premium restriction]. We really welcome it if the government really implements it,” Asif said.

He said Total Oil has worked out a system that could anticipate a possible jump in non-subsidized gasoline demand in the country.

Rulianti Syahrul, a brand and communications executive at Total Oil Indonesia, said the company is ready to compete with Pertamina in terms of pricing.

She said Performance 92, which is sold for about Rp 8,650 (98 cents) per liter is ready to compete with Pertamax (RON 92), which prices it at about Rp 8,700 per liter.

Total sold 16,000 kiloliters of gasoline last year.