Maxus clarifies

Referring to the article published in The Jakarta Post on May 16, 2001, titled Govt threatens firms abusing fuel subsidies, we deem it necessary to clarify some points so that the readers are not misled by incorrect information.

In the 15th paragraph the Post writes "American oil and gas company Maxxus (with double x), however, recorded the biggest drop as it purchased only 700 kiloliters (kl) in May compared to 8,000 kl in April".

We would like to clarify as follows:

YPF - Maxus SES BV, as one of Pertamina's partners in oil and gas operations, always obeys regulations issued by Pertamina, including fuel procurement and consumption.

YPF - Maxus SES BV has renewed purchasing prices of fuel since the government issued the new price formula.

Based on actual fuel needs for operation, YPF - Maxus SES BV needs an average of 7,000 kl/month. In March, the Company purchased 6,000 kl and in April 8,000 kl. For May 2001, it planned to purchase 6,000 kl and has taken some of 4,500 kl (not just 700 kl as written in the paper).

YPF - Maxus SES BV pays one month in advance to Pertamina, meaning that its May 2001 fuel supply has been paid in April. Because of the fuel price hike in May 2001, the payment was enough for only 6,000 kl instead of 7,000 kl.

SUGIARTO MOECHAMMAD

VP Marketing & Relations

Note: We have received a similar complaint from PT Unilever Indonesia Tbk regarding the news item based on the findings of a government inter-ministerial team.

-- Editor