El Nusa may lose Pertamina monopoly
JAKARTA (JP): Minister of Mines and Energy Kuntoro Mangkusubroto said he would abolish the monopoly given to PT EL Nusa for the maintenance of the state oil and gas company Pertamina's refineries.
"If necessary, (I will order) Pertamina to let go of the company," Kuntoro said Tuesday at a hearing with the House of Representatives Commission V for industry, mining, trade, manpower, cooperatives and the environment.
Kuntoro said all future contracts with Pertamina would have to be made through tenders in order to select bidders with the lowest price offer.
El Nusa is 51.5 percent owned by Pertamina and 48.5 percent by PT Tridaya Esta, which is controlled by ex-president Soeharto's son Bambang Trihatmodjo and legislator Indra Bambang Utoyo.
Although El Nusa is engaged in oil and gas exploration and production, telecommunications, oil refineries, oil product retail and infrastructure development, the maintenance of the refineries generate most of its revenues.
The company has enjoyed monopolies in other Pertamina operations on top of its refinery monopoly.
Pertamina currently runs nine refineries located in Pangkalan Brandan, North Sumatra; Dumai and Sungai Pakning, Riau; Musi, South Sumatra; Balongan, West Java; Cilacap and Cepu, Central Java; Balikpapan, East Kalimantan; and Kasim, Irian Jaya.
El Nusa president Aswad Dipo recently told The Jakarta Post the company enjoyed Rp 170 billion in annual revenues from the maintenance of the refineries.
The company is considered one of Pertamina's best-performing subsidiaries and plans to go public this year.
El Nusa is also among seven companies which hold exclusive trading rights for the high-octane Premix and Super TT gasolines sold domestically.
The other traders are Gigantrax, Sinar Pedoman Abadi, Hiswana Migas Cooperative, Bhakti Migas Utama, Humpuss Trading and Panutan Selaras.
Humpuss Trading is controlled by Soeharto's son Hutomo Mandala Putra, alias Tommy, while PT Panutan Selaras is a subsidiary of the Panutan Group, chaired by Soeharto's eldest son Sigit Harjojudanto. (jsk)