PLN purchases fuel from Singapore

The Jakarta Post, Jakarta

State-owned electricity company PLN is to purchase fuel from Singapore to help ensure a future fuel supply for its power generators.

The company signed on Monday a memorandum of understanding (MOU) with Singapore-based fuel trader Concord Energy.

"This agreement is expected to provide certainty in the supply of fuel for PLN at competitive prices," PLN president Eddie Widiono told reporters following the signing ceremony.

He, however, added that PLN would also continue to seek fuel supplies from state-owned oil and gas firm Pertamina.

Following the enactment of Oil and Gas Law No. 22/2001, Pertamina is no longer monopolizing the distribution of fuel in the country.

Eddie said as part of the agreement, Concord would make a two- week study to design a possible joint venture company that would help PLN seek fuel in the international market.

He added that two other companies were also interested in making similar deals with PLN, but declined to provide their names.

Securing a fuel supply for PLN's power generators would, in turn, help improve its services, said Eddie.

PLN has often been criticized for blackouts in many parts of the country, part of which is linked to a fuel supply problem at some of its power generators.

The company has often faced difficulties in seeking a fuel supply guarantee from Pertamina.