31 firms interested to become subsidized fuel distributors in 2010

As many as 31 companies, including subsidiaries of foreign oil companies, have expressed interest to become distributors of subsidized fuels in the country for 2010.

Tubagus Haryono, the head of BPH Migas, the regulatory body for downstream oil and gas industry, said in Jakarta on Monday these companies should take part in the selection process to be able to distribute subsidized fuels.

The companies include PT AKR Corporindo, PT Bumi Asri Prima Pratama, PT Concord Fuel Indonesia, PT Cosmic Indonesia, PT Dwikarya Niaga Agung, PT Elnusa Petrofin, PT Global Artha Borneo, PT Humpuss Trading, PT Hutan Nilam Persada, PT Jagad Energy, PT Lautan Luas, PT Mahaputra Adi Nusa, PT Medco Sarana Kalibaru, PT Mulya Adhi Paramita, PT Patra Niaga, PT Pertamina, PT Petrobas Indonesia, PT Petronas Niaga Indonesia, PT Premindo Mitra Kencana, PT Pumas Petro Lampung, PT Riverlake Diwa Nusantara, PT Shell Indoensia, PT Sigma Rancang Perdana, PT Solar Premium Central, PT Surya Makmur Agung Lestari, PT Tiara Energy, PT Tomindomas Bulk Terminal, PT Total Oil Indonesia and PT Unitrada Komutama

The 31 companies have already obtained the government licenses to provide fuel supply and to distribute fuels in the country. ?All of them have been invited and all have expressed keen interest to join the selection process,? he added.

The government will select distributors of subsidized fuels for next year through a direct appointment system instead of an open tender as applied in the previous years in a bid to avoid the lengthy tendering process.

However, the 31 companies would be still required to submit proposals, which should among others include their financial commitment, fuel storage capacity and distribution networks as well as the profit margin they request.

Tubagus said that the companies would be allowed to apply for distribution rights in certain distribution areas which would be soon determined by his office. ?We plan to divide the subsidized fuel market into four or 14 distribution areas,? he said, adding that those qualified to win the rights to distribute the subsidized fuels would be announced in August

In the past, BPH Migas held tenders to distribute subsidized fuels, but Pertamina always outbid the others because the latter were unable to meet the requirements such as having wide distribution networks and sufficient fuel storage capacity. (Godang)