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.