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)