Govt disburses subsidy funds to Pertamina<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The current cashflow problems being experienced by state oil and
\ngas company Pertamina will not disrupt national fuel supply as
\nthe government has started disbursing fuel subsidies.<\/p>\n
For the first phase, the government disbursed Rp 4 trillion
\n(US$421 million) last Friday in fuel subsidies to Pertamina to
\nassist the company pay for oil imports.<\/p>\n
Coordinating Minister for the Economy Aburizal Bakrie told
\nreporters on Monday that the funds were only \"emergency funds\" as
\nboth the government and Pertamina had yet to discuss the
\nobligations between them in regard to the money.<\/p>\n
\"We have to look into the problem carefully to see each sides
\nobligations. It remains unclear who owes who, and who is supposed
\nto pay who,\" he said.<\/p>\n
\"I expect the Ministry of Finance and Pertamina to sit down
\ntogether and solve the problem.\"<\/p>\n
Pertamina has repeatedly complained that the government was
\nslow in reimbursing its fuel subsidies, which as of March reached
\nRp 23 trillion.<\/p>\n
The finance ministry, meanwhile, argued that Pertamina's
\nfinancial reports should be audited first before the company was
\nreimbursed for the fuel subsidies.<\/p>\n
Without the fuel subsidies, Pertamina could fall short of cash
\nand fail to keep the national fuel stockpile at a secure level of
\n22 days of consumption.<\/p>\n
Minister of Energy and Mineral Resources Purnomo Yusgiantoro
\nwas quoted by Antara as saying that he had asked the finance
\nministry to disburse the funds needed by Pertamina to import
\nfuel.<\/p>\n
\"We have to help Pertamina's cashflow, otherwise it might
\naffect the country's stockpile of fuel,\" he said.<\/p>\n
Purnomo explained Pertamina was having difficulty importing
\noil as some banks had refused to issue the company with letters
\nof credit (L\/C) required to guarantee import payments.<\/p>\n
Pertamina spokesman Abadi Poernomo recently said that Bank
\nNegara Indonesia and the Hong Kong Shanghai Banking Corporation
\nhad refused to issue letters of credit to Pertamina as the firm
\nhad yet to repay a total of Rp 9 trillion for import financing
\nfrom the two banks.<\/p>\n
Saudi Aramco, the world's biggest oil company, refused to
\nunload a cargo of fuel in Indonesia because Pertamina failed to
\nprovide a payment guarantee, Bloomberg reported.<\/p>\n
Pertamina has to spend some Rp 8 trillion each month to import
\nfuel.<\/p>\n
Indonesia needs 178 thousand kiloliters of fuel per day --
\n74,000 kiloliters of diesel fuel, 44,000 kiloliters of Premium-
\ntype gasoline and 32,000 kiloliters of kerosene.<\/p>\n
In this year's business plan, Pertamina expects replacement
\nfunds from the government for the processing and distribution of
\ndomestic fuel of Rp 60.13 trillion, down from Rp 71.45 trillion
\nlast year.<\/p>\n
The company's income from other sources of revenue is
\nprojected to decrease to Rp 4.16 trillion from Rp 8.88 trillion.<\/p>\n
In addition, Pertamina expects revenue from fuel sales to
\ndecline slightly to Rp 79.27 trillion from Rp 80.91 trillion.
\nRevenue from fuel exports is also expected to decline to Rp 18.45
\ntrillion from Rp 18.76 trillion.<\/p>\n
Overall, the company's operating revenue is projected to reach
\nRp 197.74 trillion this year, from an estimated Rp 213.52
\ntrillion last year.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-disburses-subsidy-funds-to-pertamina-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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