BPH Migas to start selecting distributors of 2010 subsidized fuels

BPH Migas, the regulatory body for oil and gas downstream industry, will start the selection process of subsidized fuel distributors for 2010 later this month.

The agency?s chief Tubagus Haryono said in Jakarta on Monday that the selection process will begin much earlier to give enough time for tender winners to prepare their distribution networks.

?We hope the winners could be announced in September. I think this year, the number of tender participants will be higher then last year,? he said.

Last year, 28 companies including PT Pertamina (Persero), PT Shell Indonesia, PT Petronas Patra Niaga, PT Aneka Kimia Raya Tbk, PT Bumi Asri Prima Pratama, and PT Trans Pasific Petrochemical Indonesia (TPPI) took part in the tender.

A number of private companies such as Shell, Petronas and Total have been allowed to sell non-subsidized fuels following the implementation of the Oil and Gas Law in 2001. But Pertamina still holds the rights in the sales of subsidized fuels.

The tender for the distribution of subsidized fuels has, in fact, been conducted since the law came into effect, but none of private companies have been able to meet the strict requirements imposed by BPH Migas. The requirements include that they have sufficient storage capacity and have nationwide distribution networks. (godang)