Government finally disburses PT PIM's bridging funds
Friday, June 17 2005 - 02:05 AM WIB
"The bridging funds amounting to US$16 million had been disbursed a few days ago,"Finance Jusuf Anwar said to reporters on Thursday.
He said that bridging funds was needed because PT PIM was in financial difficulties to pay for the gas import. "PT PIM has cash of only US$7 million. The company needed additional funds of about US$16 million to cover the import of a cargo of LNG which cost about US$23 million," he added.
PT PIM has suffered a shortage of natural gas supply due to the decline in the production of gas producer PT ExxonMobil Indonesia, the only gas suppliers in the province. At present, ExxonMobil's gas production is only enough to meet the export commitment of LNG producer PT Arun.
The government has ordered PT Exxon to resume its gas supply to PT PIM to prevent the company from halting its production activities. In return, the government has agreed to import a cargo of LNG in order to help the LNG producer meet its export commitment for July.
PT PIM's president director said that the fertilizer company had been allowed to export its fertilizer to obtain additional funds to pay the company's gas needs. "We are still studying the world's fertilizer market to get reliable price information before deciding the export price of the fertilizer export," he said. (*)