Foreign oil firms ask govt to sell assets in Pertamina

Some foreign oil firms? executives taking part in the preparation of government regulations to implement Law No. 22, 2001 on oil and gas have proposed that the government sell its assets in state oil and gas firm Pertamina, according to National Entrepreneurs Association chairman Eri Purnomohadi.

Eri said the government?s assets in Pertamina include oil refineries and depots, Suara Pembaruan daily reported on Monday. He did not mention the names of the oil firms.

He said Pertamina should be allowed to continue using the assets so that it could remain strong and withstand stiff competition with world-class oil firms operating in Indonesia.

President Megawati Sukarnoputri late last year signed the oil and gas law which revokes Pertamina?s decades long monopoly in the oil industry.

Under the law, Pertamina operates as a limited liability company and no longer has the authority to sign exploration and exploitation contracts with foreign oil investors and supervise contractors. The so-called implementing body takes over the authority from Pertamina.

The law also stipulates the formation of a regulatory body for the distribution of fuel throughout Indonesia, another monopoly held by Pertamina.

Eri told Suara Pembaruan foreign oil investors must be obliged to build own refineries.

Presently, Pertamina operates nine oil refineries in Pangkalan Brandan (North Sumatra), Dumai (Central Sumatra), Sungai Pakning (Central Sumatra), Musi (South Sumatra), Balikpapan (East Kalimantan), Balongan (West Java), Cilacap (Central Java), Cepu (Central Java), and Kasim (Papua). (*)