Pertamina to invest in gas stations

Pertamina to invest in gas stations

The Jakarta Post, Jakarta

State oil and gas firm PT Pertamina plans to invest some Rp
1.3 trillion (US$144.28 million) over the next three years to
expand its fuel retail business as the government will liberalize
the country's oil and gas downstream sector next year.

Pertamina spokesman Hanung Budya Yukyanta said the funds would
be used to install 300 gasoline stations, or a 30 percent
increase compared to the current number of the company's
stations.

Hanung said Pertamina would work with oil and gas retail
company (Hiswana Migas) in providing and distributing oil-based
fuel.

"Working with Hiswana Migas would strengthen Pertamina's
position as market leader in providing oil-based fuel," Hanung
said in a press statement issue on Friday.

Pertamina lost the monopoly over the country's oil and gas
sector with the introduction of Oil and Gas Law No. 22/2001.

In the downstream sector, which includes refining and
retailing, Pertamina retains its right to distribute oil-based
fuels until Nov. 25, 2005.

After next year, any investors will be permitted to do
business in the downstream sector.

To help strengthen Pertamina's brand image in oil-based fuel
marketing, Pertamina will launch two new products in December
2004 namely Solar Plus and Gasoline RON 98.

The products will be sold in Jakarta, Java and Bali and Batam
before being sold nationwide.

"Both are environmentally friendly products which meet Euro 2
quality standards," Hanung said.