$1.5b needed to bring fuel stocks back to normal<\/p>\n
Leony Aurora, The Jakarta Post, Jakarta<\/p>\n
Long queues at gas stations across the archipelago are likely to
\ncontinue for another week as domestic stockpiles for Premium
\ngasoline and diesel fuel have dropped to 12.7 days and 14.5 days,
\nrespectively, as a result of Pertamina's cash flow problems.<\/p>\n
State oil and gas firm PT Pertamina's president director Widya
\nPurnama said on Monday in a hearing with the House of
\nRepresentatives that 3.2 million barrels of fuel products had
\njust begun to be unloaded.<\/p>\n
The supplies arrived a week ago but the company could not
\nunload them as it did not have sufficient funds to pay.<\/p>\n
\"The (subsidy) funds only came in on June 15,\" he told members
\nof the House' Commission VII, overseeing energy and mining.<\/p>\n
Domestic fuel stocks stood at 17.5 days on Monday, far lower
\nthan the ideal of at least 22 days of supply. Pertamina has
\nsufficient kerosene -- used mainly by low-income families and
\nsmall industry -- to last another 25.3 days.<\/p>\n
Widya said Pertamina needed about 10 days to unload and
\ndistribute the fuel and raise stocks to 20.5 days. \"We expect
\nstockpiles to rise on June 24 or June 25,\" he said.<\/p>\n
The Ministry of Finance disbursed Rp 4.02 trillion (US$418
\nmillion) last week, which was used to pay three letters of credit
\n(L\/Cs) for previous months' imports.<\/p>\n
\"To increase domestic fuel stocks back to (the normal level
\nof) between 22 and 25 days, we need between $1.3 billion and $1.5
\nbillion,\" said Widya.<\/p>\n
Local media have reported that several areas in the country
\nare experiencing fuel shortages. Motorists in Lombok in West Nusa
\nTenggara, Semarang, Surabaya and Medan have had problems finding
\nPremium fuel over the past few days.<\/p>\n
The Grati power plant in Pasuruan, East Java, could not be
\noperated on Monday as diesel fuel was not available, state power
\nfirm PT PLN reported.<\/p>\n
\"As a result, the Java-Bali power grid will see a deficit of
\n658 megawatts (MW) during peak hours tonight,\" said Mulyo Adji,
\ngeneral manager of the Java-Bali grid's center for power
\ndistribution.<\/p>\n
Responding to Pertamina's cash flow problems, Commission VII
\nrecommended that the Minister of Energy and Mineral Resources
\nassist in coordinating with the finance ministry to smooth the
\nway for the subsidy funds to reach Pertamina.<\/p>\n
\"Fund disbursement to Pertamina should be a priority to
\nguarantee fuel supplies throughout the country,\" said the
\ncommission.<\/p>\n
It was unclear from where Pertamina would get sufficient funds
\nto bring stockpiles back to the ideal level.<\/p>\n
\"A team comprising Pertamina and the finance ministry is
\ncurrently calculating the amount to be paid by the government,\"
\nsaid Widya.<\/p>\n
He declined to give a specific time frame for the results.<\/p>\n
Pertamina is also planning to take loans of between $500
\nmillion and $700 million to be used as bridging funds for future
\nimports.<\/p>\n
\"The board of commissioners in principal have agreed (to the
\nloan). We're just waiting for their (signed) approval,\" said
\nWidya.<\/p>\n
Global oil prices reached their highest levels at $59.23 per
\nbarrel on Monday, despite the Organization of Petroleum Exporting
\nCountries' (OPEC) decision to add another 500,000 barrels of oil
\nper day (bpd) to its official quota.<\/p>\n
Indonesia has to import 300,000 bpd of crude oil for
\nprocessing at Pertamina's refineries, which have a total
\nprocessing capacity of one million barrels of crude oil per day.<\/p>\n
To fulfill domestic demand, Pertamina also needs to import
\n400,000 bpd of fuel products.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/15b-needed-to-bring-fuel-stocks-back-to-normal-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}