Companies can import fuel directly: Minister

Industrial companies cam now import fuel from abroad, Ministry of Industry Andung Nitimiharja said in Jakarta. But the fuel must be imported for the companies? own usage, the Koran Tempo newspaper reported in its Friday edition.

Previously, state oil and gas company PT Pertamina had the sole authority to import fuel and distribute in the domestic market.

Andung said some businesspeople asked him about the possibility to import oil directly or without the involvement of Pertamina.

?As per the existing law, it can be possible whatever the volume,? Andung said in Jakarta on Thursday.

Companies can save money if they import directly from foreign countries.

Indonesian Entrepreneurs Association chairman Djimanto said the actual price of the fuel imported from Singapore is Rp 4,500 (US$=Rp.10,350) per liter in Riau. But Pertamina sells it Rp 5,480 per liter. The price difference is almost Rp 1,000.

According to the chairman of Indonesian Fiber Synthetics Producers Association Kustarjono Prodjolalito, the fiber industry can save Rp 4 billion per month if it can import fuel directly with a reduced price of Rp 100 per liter. The industry needs 40,000 kiloliters of fuel per month.

In order to make sure, Kustarjono said he will meet the officials of the Ministry of Energy and Mineral Resources on Friday morning to discuss the matter of importing fuel directly.

?We would like to know the conditions for becoming importers of fuel,? he said.

But Pertamina?s industrial marketing manager Muhamad Sadji said so far no body has the right to import fuel from outside except Pertamina under the old rules. But this can happen under the new oil and gas law No. 22/2001.

Earlier the Minister of Energy and Mineral Resources said the implementation of the Law No. 22/2001 regarding oil and gas, especially the import and distribution of fuel, will be postponed. Because, the government must regulate the fuel price for some time.(*)