Govt to retain Pertamina as main distributor of 2011 subsidized fuels

The government will continue to retain Pertamina as the sole distributor of subsidized petroleum-based fuels in the country?s most populated areas of Java and Bali next year despite its pledge to involve more private companies in the distribution of the subsidized fuels.

Regulatory body for oil and gas downstream sector BPH Migas's chairman Tubagus Haryono said in Jakarta on Monday that private companies would be allowed only to distribute subsidized fuels outside Java and Bali.

The government would allow private companies to distribute only about 500,000 kiloliters of the 40.7 million kiloliters of subsidized fuels allocated for 2011.

BPH Migas has invited 34 companies to take part in the tender for the distribution of subsidized fuels for 2011. They include PT Pertamina (Persero), PT Petronas Niaga Indonesia, PT Aneka Kimia Raya Corporindo Tbk, PT Shell Indonesia, and PT Bumi Asri Prima Pratama, PT Petrobas Indonesia, PT Patra Niaga, PT Petro Andalan Nusantara, PT Total Oil Indonesia, and PT Medco Sarana Kalibaru.

The winners will be unveiled between December 20 and 23.

This year, in addition to Pertamina, the government appointed Petronas and AKR in distributing the subsidized fuels, which accounted for more than 80 percent of the total fuel demand in the country. Petronas is allowed only to distribute 20,440 kiloliters and AKR about 56,500 kiloliters. The rest is still distributed by Pertamina. (*)