Govt to end Pertamina's oil lubricant monopoly<\/p>\n
JAKARTA (JP): The government will soon scrap state oil and gas
\ncompany Pertamina's monopoly on the production, import and
\ndistribution of oil-based lubricants, according to Minister of
\nMines and Energy Kuntoro Mangkusubroto.<\/p>\n
Kuntoro said on Friday that the ministry was preparing a
\nruling to replace 1988 Presidential Decree No. 18 which grants
\nthe state company a monopoly on the product.<\/p>\n
\"The monopoly on lubricants will soon be eliminated. All
\nbusiness players will be treated equally,\" Kuntoro said in a
\nstatement.<\/p>\n
Under the presidential decree, private companies and
\ncooperatives are only allowed to recycle used lubricants and
\nproduce and distribute synthetic lubricants.<\/p>\n
Kuntoro said the monopoly has stunted development of the
\ncountry's lubricant industry and led to a shortage of supplies on
\nthe domestic market.<\/p>\n
The limited supply of lubricants has encouraged illegal
\npractices, including the production of fake lubricants, he added.<\/p>\n
Furthermore, Kuntoro said, the presidential decree was no
\nlonger applied uniformly because the government has allowed
\nseveral private companies to produce oil based lubricants.<\/p>\n
Private lubricant producers in the country include PT
\nWiraswasta Gemilang Indonesia, which produces Pennzoil and Eva
\nLube; PT Dirga Buana Sarana, which produces Valvoline and Union
\nOil; PT Agip Lubrindo Pratama; PT Cemerlang Pelumas Prima; and PT
\nPanutan Selaras.<\/p>\n
These companies used their political connections to obtain
\ngovernment licenses to produce oil-based lubricants despite the
\n1988 presidential decree, according to analysts.<\/p>\n
Wiraswasta Gemilang is owned by former President Soeharto's
\ncousin Sudwikatmono and his associate Ibrahim Risyad. Dirga Buana
\nis partly owned by Soeharto's sister Noek Bressina, while Panutan
\nSelaras is controlled by Soeharto's eldest son Sigit
\nHarjojudanto.<\/p>\n
Kuntoro said the new regulation would give local producers
\nsufficient protection from overseas companies to promote the
\ndevelopment of a lubricant industry in the country.<\/p>\n
Under the new regulation, the import of oil-based lubricants
\nwith an oil content of 70 percent will only be permissible for
\nlocal lubricant producers who have obtained an import license
\nfrom the government.<\/p>\n
\"(With such a regulation) local lubricant producers are
\nexpected to become a host in their own country and they will not
\nchange into importers or traders of foreign products,\" Kuntoro
\nsaid.<\/p>\n
The import of synthetic lubricants which have an oil content
\nof less than 70 percent will not be regulated by the Ministry of
\nMines and Energy, but the ministry will check the quality of
\nlubricants being imported.<\/p>\n
He said the government also plans to limit the number of
\nlubricant producers to ensure that the venture provides a
\nsufficient return on investments. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-to-end-pertaminas-oil-lubricant-monopoly-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}