Hurdles remain to distribute subsidized fuel: BHP Migas

Downstream Oil and Gas Regulating Body BPH Migas Chairman Tubagus Haryono admitted on Monday that hurdles still existed to prevent foreign players to participate in distribution of subsidized fuel.

Following the enactment of Law No. 22/2001 on oil and gas, foreign companies are indeed allowed to distribute subsidized fuel but the payment of fuel subsidy still refers to the state budget law. Consequently, the payment takes a lot of time, whereas businessmen expected the moratorium not too long.

He said BPH Migas would hold a meeting with prospective distributors to find solution. A number of companies including Shell, Chevron, Total, Petronas and Singapore Petroleum Company (SPC) had expressed interest to distribute subsidized fuel, which had been monopolized by Pertamina. (*)