Pertamina told to secure distribution<\/p>\n
Rendi A. Witular and Leony Aurora, The Jakarta Post, Jakarta<\/p>\n
President Susilo Bambang Yudhoyono has instructed state oil and
\ngas firm PT Pertamina to keep ploughing more oil-based fuels onto
\nthe market and to tighten distribution supervision amid fuel
\nshortages in some areas, a situation exacerbated by illegal
\nhoarding by errant distributors.<\/p>\n
Some distributors preferred not to unload their supplies in
\norder to reap hefty profits ahead of the government's plan to
\nincrease fuel prices early next month.<\/p>\n
Minister of Energy and Mineral Resources Purnomo Yusgiantoro
\nsaid on Wednesday that the instruction was made even though the
\nPresident was aware that such a move would further burden the
\nstate budget.<\/p>\n
"President Susilo wants the fuel shortage to be addressed
\nimmediately by requesting me and Pertamina to boost supplies of
\nfuel, although he realized that it would increase the cost of the
\nfuel subsidy," he said.<\/p>\n
The request was delivered during a teleconference between
\nSusilo and several of his ministers, including Purnomo, Minister
\nof Trade Mari Elka Pangestu, Minister of Health Siti Fadilah
\nSupari, Minister of Social Services Bachtiar Chamsyah and State
\nSecretary Yusril Ihza Mahendra at the Presidential Palace.<\/p>\n
Currently on a six-day trip to the United States, Susilo has
\nbeen holding teleconference meetings with his ministers since
\nMonday.<\/p>\n
Indonesia is set to spend over US$10 billion this year to keep
\nprices of gasoline, diesel and kerosene on the domestic market
\nbelow international market prices.<\/p>\n
Purnomo said there was an indication that the supply shortage
\nwas being driven by fuel hoarding by several distributors, in
\naddition to smuggling.<\/p>\n
The country's fuel stocks are currently sufficient for 22.8
\ndays, according to Purnomo.<\/p>\n
To help address the shortage, the government would bypass fuel
\ndistribution chains and sell the fuel directly to retailers.<\/p>\n
Meanwhile, a government joint fuel monitoring team reported
\nits findings on illegal fuel trading, reportedly worth a total of
\nRp 28 billion ($2.8 million).<\/p>\n
In the investigation, conducted between July and September,
\nthe team discovered eight industry sectors in Java and Kalimantan
\nthat were using subsidized and smuggled fuel, instead of paying
\nmarket prices for the commodity, in a move estimated to have
\ncaused the state nearly Rp 12 billion in losses.<\/p>\n
"The illegal trading is caused by the big price gap between
\nsubsidized fuel prices and market prices," said the team's
\nchairperson Slamet Singgih.<\/p>\n
Industrial fuel users have to pay Rp 5,480 for a liter of
\nhigh-grade diesel, and Rp 5,490 a liter for kerosene, as compared
\nto the subsidized price of Rp 2,200 per liter for both types.<\/p>\n
"We will coordinate with the Ministry of Industry, requesting
\nit to revoke business licenses of those involved in the theft,"
\nsaid Singgih.<\/p>\n
The team found 14 gas stations across Java that had tampered
\nwith their meters, out of the total 20 stations picked at random.
\nThey also uncovered a diesel smuggling operation to neighboring
\nTimor Leste using a tanker vessel with a capacity to carry 1,000
\nkiloliters.<\/p>\n
Fourteen illegal kerosene terminals were uncovered by the
\nteam. "We have handed over the data to the police for further
\naction," said Singgih.<\/p>\n
The fuel monitoring team was dissolved last year and
\nrejuvenated in April. It comprises 28 members, including
\nofficials from the Oil and Gas Upstream Regulatory Agency,
\nPertamina, the Navy, the National Police, the Air Force and the
\nArmy.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pertamina-told-to-secure-distribution-1447893297",
"image": ""
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