BP eyeing Indonesian retail market

Anglo-American energy giant BP Plc is ready to tap the potentially huge Indonesian retail market once the regulations open the market for foreign players.

"Indonesia is a very potential market for us to do retail business, and we are now conducting studies while waiting for the new regulations that will allow us to enter Indonesian retail market," Pradakso Hadiwidjojo, BP Indonesia's vice president for government and public affairs, told Petromindo.com in a recent interview.

Aside from BP, other foreign giants including ExxonMobil, Chevron and Texaco, TotalFinaElf and Petronas have been anxiously waiting for the new oil and gas bill that will lift state oil and gas Pertamina's downstram monopoly and would allow them to enter Indonesian downstream business.

Pradakso, however, did not disclose the amount of investment BP was ready to invest in Indonesia.

He said that BP was currently studying every possibility in formulating its business strategy, including forming alliance with other players.

So far, said Pradakso, BP has no plan to build refinery in Indonesia to support its retail business.

"We do not see any pressing need to build our own refinery in Indonesia, as we can always buy fuel from several refineries with competitive prices," he said. (alex)