Increase asphalt prices

Increase asphalt prices

State oil and gas company Pertamina should increase asphalt
prices. Pertamina is Indonesia's major oil refiner and producer
of asphalt, which is mainly used for road building and
maintenance. These road projects are paid for by the government,
and are often in turn funded by foreign aid.

Pertamina asphalt production is not enough to meet the demand
and Indonesia has to import asphalt every year at much higher
international prices. If Pertamina were to increase its asphalt
price to world market levels, and use the extra income to help
subsidize low fuel prices for the poor, I am sure the
international donors and project financiers would have no
objections.

This asphalt price increase would not impact directly on the
general public and may also encourage investment in the
petrochemical sector.

H. MOHAMMED KASSIM GOKAL, Jakarta