Govt's oil profits estimated to reach $187.6 million
Govt's oil profits estimated to reach $187.6 million
JAKARTA (JP): Acting Minister of Mines and Energy Moerdiono
said yesterday the government's net profits from domestic oil
sales in the first semester of the current 1995-96 fiscal year
are estimated to reach Rp 412.9 billion (US$187.6 million).
Moerdiono told a hearing with the Mining, Energy and
Manufacturing Commission of the House of Representatives that
the government's net revenues from oil are projected at Rp 5.48
trillion for the first semester, 55.80 percent of the target set
for the whole year.
State-owned oil company Pertamina's president Faisal Abda'oe
said that the government's projected revenues from the oil sector
for the fiscal year would be achieved because the oil prices
averaged at $17.16 per barrel between April and August.
Replying to a question from the commission members, Abda'oe
said that the government had licensed three private-owned
companies -- PT Wiraswasta Gemilang Indonesia, PT Sinar Pejambon
Indah and PT Elnusa -- to recycle used lubricating oil.
He said Wiraswasta Gemilang had started trial production at
Bekasi, West Java, while Sinar Pejambon is now constructing its
plants at Pasuruan, East Java and Medan, North Sumatra.
A Pertamina subsidiary, Elnusa, is still negotiating a
financing package for its project at Merak, West Java.
Secretary-General of the Ministry of Mines and Energy Umar
Said, who also attended the hearing, told the commission that the
seven private oil refineries which had been licensed by the
government would not procure their crude oil feedstocks from
Indonesia but from the Middle East.
He said the licensing of the private oil refineries did not
violate Law No. 44/1960 on oil and natural gas development nor
Law No. 8/1971 on Pertamina, which granted the state company the
monopoly of oil refining in the country.
Umar said the licensing of the private refineries was based on
a government regulation on privatization.
He acknowledged, though, that Law No. 44/1960 and Law No.
8/1971 need to be amended to provide stronger legal foundations
for the privatization of the petroleum industry.
The seven refineries already licensed are: PT Indo-Xo, which
will build an oil refinery in Sorong, Irian Jaya, with an
investment of $2 billion, PT Sabang Oil Refinery Corporation in
Sabang, Aceh, with $1.58 billion, PT Tanjung Uban Refinery in
Riau, with $1.5 billion, PT Asia Pasific Petroleum Indonesia in
Situbondo, East Java, with $1.09 billion, PT Buana Ganda Perkasa
in Probolinggo, East Java, with $3.5 billion, PT Indo Moody Oil
Comp. in Pare-Pare, South Sulawesi, with $1.32 billion and PT
Norco Internusa in Gresik, East Java with $1.8 billion. (04)