Shell Indonesia retail operations await subsidy move<\/p>\n
Phelim Kyne
\nDow Jones\/Jakarta<\/p>\n
An Indonesian unit of Royal Dutch Shell PLC has delayed the
\nlaunch of a long-planned line of Shell-branded retail gasoline
\nstations until the government clarifies its fuel price subsidy
\npolicy, a company executive said recently.<\/p>\n
Shell wants details on how the government will regulate
\nsubsidized gasoline sales before the company starts retail
\noperations, Shell Indonesia's external and corporate affairs
\nhead, Wally Saleh, told Dow Jones Newswires.<\/p>\n
"We can start doing the business (now) if we want to...but we
\ndon't know how the subsidized fuel will be managed," Saleh said.<\/p>\n
"It's subject to further government rules and their guidance,
\n(so) at the moment we're still waiting for that."<\/p>\n
Saleh spoke on the sidelines of the Asian Forum on Corporate
\nSocial Responsibility conference in Jakarta.<\/p>\n
Shell's retail gasoline operations' delay reflects the revenue
\nand investment losses caused by the government's dithering over a
\nfirm timetable on the eventual phasing out of fuel price
\nsubsidies.<\/p>\n
The government granted licenses in February 2004 to Shell and
\nfive other foreign firms to import and sell oil products in the
\ncountry, ending the decades-long monopoly of state oil and gas
\ncompany PT Pertamina.<\/p>\n
A senior executive of Jakarta-based AKR Corporindo told Dow
\nJones Newswires in April that the firm had signed a contract with
\nShell Indonesia to transport fuel to up to a dozen Shell-branded
\ngasoline stations that the petroleum giant plans to open in
\nIndonesia.<\/p>\n
Saleh declined to confirm the number of Shell-branded gas
\nstations the company plans to eventually launch, but said Shell
\nwould like to begin retail operations "as soon as possible",
\nwithout elaborating.<\/p>\n
"It's not just a matter of ending the subsidies...(we) want to
\nknow what the rules are," he said.<\/p>\n
"To construct stations...we have plans, but the plans will be
\nsubject to further study."<\/p>",
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