Oil giants Total and Chevron Corp. plan to build and operate retail fuel outlets in Indonesia this year, to heat up competition after the government ended retail fuel monopoly by state-run oil firm Pertamina in 2005, an official said Tuesday (20/2/07).
Royal Dutch Shell and Malaysia's Petronas were the first foreign firms to have fuel outlets in Indonesia after retail fuel business was open to foreigners.
Total and Chevron see Indonesia as a lucrative oil market whose energy consumption is still growing, said Erie Soedarmo, a senior official with the oil and gas directorate of the Ministry of Energy and Mineral Resources.
"Indonesia, which has a population of more than 220 million and is a huge energy consumer, provides a big opportunity for retail fuel business," he was quoted as saying by Antara.
Total earlier announced a plan to build five fuel outlets in Jakarta and suburbs as a start, and add the number to around 200 across Indonesia by 2008. However, according to a government regulation, the open competition applies only to high-octane fuel products which make up only 5% of fuel consumption.