Govt pays Rp 12 trillion fuel subsidy to Pertamina
Saturday, July 10 2004 - 03:44 AM WIB
State oil and gas company PT Pertamina has announced that the ministry of finance paid Rp 12 trillion in June 2004 for oil subsidies, the Bisnis Indonesia newspaper reported in its Saturday edition.
Pertamina?s public relations manager Hanung Budya Yuknyanta said the realization of another Rp 14 trillion will be done in July 2004.
?More than that, the ministry of finance has commitment to pay the fuel subsidy amount for the period from January to May and the payment will be made before end of the year,? Hanung said.
He said the payment is essential because if it is delayed, Pertamina will be forced to delay its obligations like foreign exchange LC (letter of credit), who will be due this week.
?This will create less confidence (toward Pertamina) among our partners in foreign countries. This will be felt in the coming one to two months,? Hanung said. (*)