Govt allows Aceh-based fertilizers to operate on a commercial basis
Tuesday, June 14 2005 - 03:20 AM WIB
The government has decided to let two state-owned fertilizer companies PT Pupuk Iskandar Muda (PIM) I and PIM II run their operations on a commercial basis, a minister said Monday.
State Enterprises Minister Sugiharto said the two companies will be able to buy gas at the market price and also sell their products at market prices either in the local market or overseas.
Moreover, PIM I and II will be able to raise funds at commercial rates, Sugiharto said in a meeting with the House of Representatives.
Aceh-based PIM I and II have been facing difficulties in securing supply of natural gas due to declining output from the Arun gas field operated by American energy giant ExxonMobil.
The government had earlier asked state oil and gas firm PT Pertamina to import liquefied natural gas (LNG) to enable the two fertilizers to secure gas from the local gas field. (dino)