Pertamina reduces fuel imports due to low demand<\/p>\n
JAKARTA (JP): The state-owned oil and gas company Pertamina
\nhas reduced fuel imports in line with a drop in domestic demand
\nduring the economic crisis, company spokesman Ramli Djaafar said
\nyesterday.<\/p>\n
Ramli said the demand for fuel products like diesel had also
\ndecreased significantly as many industries had reduced activities
\nand people were using their cars less as part of efficiency
\nprograms to cope with the monetary turmoil.<\/p>\n
He denied reports that Pertamina had reduced fuel imports due
\nto financial problems or in line with government measures to cut
\nback on foreign exchange spending.<\/p>\n
\"The reason for the cut in imports is merely the decrease in
\ndemand. In such a situation, Pertamina prioritizes the sale of
\nits products over the imported products. That is why we reduced
\nthe imports,\" he said.<\/p>\n
The nation consumes 52 million kiloliters of fuel annually, 80
\npercent of which is supplied by the firm's refineries, according
\nto Pertamina data.<\/p>\n
The company is the largest crude oil exporter in Southeast
\nAsia but imports 20 percent of its fuel for the domestic market
\nfrom Southeast Asian countries, including Singapore and Thailand,
\nand the Middle East.<\/p>\n
Pertamina's imports are handled by its affiliates Pacific
\nPetroleum Trad Co. Ltd, Perta Oil Marketing Ltd and Permindo
\nTrading Oil Co. Ltd.<\/p>\n
A Ministry of Mines and Energy official, who wanted to remain
\nanonymous, said recently that Pertamina faced a cash-flow problem
\nwhich affected its ability to import fuel.<\/p>\n
The official said Pertamina received revenue from the sale of
\nfuel domestically in rupiah but purchased fuel from abroad in
\ndollars.<\/p>\n
The monetary crisis, which has reduced the value of the rupiah
\nby 75 percent against the United States dollar, has made it
\ndifficult for the company to convert its rupiah revenue into
\ndollars.<\/p>\n
Company president Soegianto has denied any cash-flow problems,
\nsaying the company was still able to obtain dollars from the
\nmarket.<\/p>\n
\"There is no such cash-flow problem,\" he said. \"We still have
\nsufficient stocks of fuel in the country until March.\" (jsk)<\/p>",
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