Pertamina reduces fuel imports due to low demand
Pertamina reduces fuel imports due to low demand
JAKARTA (JP): The state-owned oil and gas company Pertamina
has reduced fuel imports in line with a drop in domestic demand
during the economic crisis, company spokesman Ramli Djaafar said
yesterday.
Ramli said the demand for fuel products like diesel had also
decreased significantly as many industries had reduced activities
and people were using their cars less as part of efficiency
programs to cope with the monetary turmoil.
He denied reports that Pertamina had reduced fuel imports due
to financial problems or in line with government measures to cut
back on foreign exchange spending.
"The reason for the cut in imports is merely the decrease in
demand. In such a situation, Pertamina prioritizes the sale of
its products over the imported products. That is why we reduced
the imports," he said.
The nation consumes 52 million kiloliters of fuel annually, 80
percent of which is supplied by the firm's refineries, according
to Pertamina data.
The company is the largest crude oil exporter in Southeast
Asia but imports 20 percent of its fuel for the domestic market
from Southeast Asian countries, including Singapore and Thailand,
and the Middle East.
Pertamina's imports are handled by its affiliates Pacific
Petroleum Trad Co. Ltd, Perta Oil Marketing Ltd and Permindo
Trading Oil Co. Ltd.
A Ministry of Mines and Energy official, who wanted to remain
anonymous, said recently that Pertamina faced a cash-flow problem
which affected its ability to import fuel.
The official said Pertamina received revenue from the sale of
fuel domestically in rupiah but purchased fuel from abroad in
dollars.
The monetary crisis, which has reduced the value of the rupiah
by 75 percent against the United States dollar, has made it
difficult for the company to convert its rupiah revenue into
dollars.
Company president Soegianto has denied any cash-flow problems,
saying the company was still able to obtain dollars from the
market.
"There is no such cash-flow problem," he said. "We still have
sufficient stocks of fuel in the country until March." (jsk)