Pertamina hits back at Walhi

Pertamina hits back at Walhi

JAKARTA (JP): State-owned oil company Pertamina denied
yesterday accusations made by the Indonesian Forum for
Environment (Walhi) that it was not concerned about air pollution
in Jakarta caused by leaded gasoline.

The head of Pertamina's facilities and supplies supervision
division, Suhud, said the company's concern was first shown in
1991 by its decision to stop production of Super 98 gasoline, a
fuel with a very high lead level, and its decision to introduce
natural gas in 1987.

"We do care (about air pollution)," he said.

Suhud said the reason Pertamina charged more for unleaded fuel
was because it cost more to produce.

Suhud was speaking at a seminar organized to announce the
results of a survey on Jakarta's air pollution.

The survey was conducted by the Indonesian Consumers
Foundation (YLKI) in cooperation with Swisscontact, a private
foundation working to improve urban environments.

The study revealed that almost two-thirds of motorists were
unaware of the benefits of unleaded fuel.

Suhud also denied that Pertamina made more profit from its
higher priced Super TT unleaded gasoline than it did from its
leaded fuels, such as Premix.

"Pertamina doesn't have the authority to set fuel prices. It
was the government, through a Presidential decree, which made the
decision," he said.

Suhud said Pertamina did not make huge profits from selling
fuel. "All our income goes directly to the government, we're only
given operational funds," he said.

Super TT is sold by Pertamina for Rp 975 (32 US cents) per
liter, and leaded fuel for Rp 850.

Suhud said Pertamina produced much unleaded fuel, "but, we
don't have enough gas stations to distribute it."

He said that from when it was first launched in August 1995,
Super TT was sold in 39 gas stations in Jakarta and West Java.

The company sold 1,753,000 liters of Super TT in 1995/1996 and
2,600,000 liters in 1996/1997. It expects to sell 18,000,000
liters this financial year.

Suhud declined to reveal how much leaded fuel was sold.

The Environmental Impact Management Agency's director for air
pollution control, Margana Koesoemadinata, said that with
pollution worsening every day the city could not wait for the
price of Pertamina's Super TT to come down.

He suggested that Pertamina and related government offices let
gas stations sell unleaded fuel produced by PT Sigma Rancang
Perdana and sold under the brand name Petro 2T.

Petro 2T, he said, was already sold in suburban areas in the
city and was mainly bought by drivers of ojek (motorcycles taxis)
and other public transport vehicles. It was sold for Rp 660 per
liter, he said.

"Those who buy Petro 2T mostly don't know that it is unleaded
fuel. They buy it because of its cheap price," Margana said after
the seminar.

"The government needs to be aware of Petro 2T and allow it to
be sold at all gas stations," he said.

YLKI's chairwoman, Tini Hadad, also urged the government to
reconsider its priorities with regard to pollution.

"Pollution harms people's lives. The government should give
priority to the people instead of only considering profit," she
said.

LPG

Suhud said Pertamina sold natural gas at 12 stations in the
Greater Jakarta area and two in Surabaya, East Java, and expected
to finish nine more outlets by the end of this year.

Two are being built in Medan, North Sumatra, two in Palembang,
South Sumatra, two in Surabaya, East Java, and three in West
Java, one in Cikampek and two in Cirebon.

Suhud said that next year Pertamina planned to build another
station in Jakarta and three in Surabaya.

He said Pertamina introduced liquefied petroleum gas (LPG) in
1985 and sold it at eight gas stations in Jakarta, one in Bandung
and one in Denpasar, Bali.

President Soeharto has said Pertamina should phase out the use
of leaded gasoline by 1999. (ste)