Pertamina's monopoly over gasoline ends

Pertamina's monopoly over gasoline ends

JAKARTA (JP): The government's decision to let private
companies import raw materials for unleaded gasoline production
poses no problem to state oil firm Pertamina, the company's
president said yesterday.

Pertamina's president, Faisal Abda'oe, said the decision would
not hurt Pertamina's business.

"It is the government decision. We support it," Faisal told
newsmen after receiving an ISO 9002 certification award for
Pertamina's lube oil blending plant in Cilacap, Central Java.

The minister of mines and energy, I.B. Sudjana, issued a
decree on March 24 allowing private companies to import raw
materials for four types of unleaded gasoline instead of buying
it from Pertamina.

The four types of unleaded gasoline are Premix, Super TT,
Prima TT and Petro 2T.

Premix, Super TT and Prima TT are for four-wheeled cars, while
Petro 2T is for motorcycles and boats.

Before the decree Pertamina was the only company allowed to
sell the raw materials for unleaded gasoline production,
including premix.

Premix makers bought the raw materials from Pertamina and
blended it with additives to make Premix.

The decree also allows private gasoline makers to market their
products themselves and set their own prices.

Sudjana said the decision was made to support the government's
Blue-Sky campaign to phase out leaded gasoline by 1999.

Faisal said the decree encouraged private companies to be
involved in gasoline production and Pertamina was ready to
compete with them.

"We have been in this business a long time," Faisal said about
the prospect of competition.

The Kontan tabloid reported that Premix gasoline makers would
import high octane motogas components (HOMC) instead of buying
them from Pertamina.

HOMC costs Rp 400 (16 US cent) in Singapore compared to
Pertamina's Rp 700.

There are five Premix makers in Indonesia. They are PT Humpuss
Trading, Pertamina's subsidiary PT Elnusa, PT Giga Antrax, PT
Sinar Pedoman Abadi and PT Panutan Selaras.

The head of Pertamina's logistic division, Mahdi Hasmi, said
the five firms make about 500,000 kiloliters of Premix a year,
with annual growth about 10 percent.

Elnusa and Panutan are the biggest makers, making 40 percent
and 25 percent of supply respectively.

Pertamina plans to make Premix at its oil refinery in
Balongan, West Java.

According to Kontan, Pertamina wanted the private Premix
makers to act as its distributors rather than as direct
competition.

Faisal said Pertamina would go ahead with is production plans
in case the private Premix makers rejected Pertamina's
offer. (jsk)