India?s IOCL plans to enter fuel retail business in Indonesia: Report

Indian Oil Corp. Ltd. (IOCL) plans to enter petroleum-retailing industry and is willing to launch retail outlets in Indonesia by means of a fully owned subsidiary, PressZoom reported Monday.

If this plan gets materialized, IOCL will become India?s third oil venture to market petroleum products abroad, the website said.

Indonesian government has nearly 70 percent share of TubanPetro, other shareholders in Tuban include big names such as Pertamina, Tuban Petrochemicals Pte Ltd (which is Siam Cement PCL?s - largest conglomerate of Thailand ? subsidiary), Sojitz Corporation (earlier known as Nissho Iwai Corp.), and Itochu Corporation.

Although Indonesia has price control on the petroleum products, premium grade fuel selling strategy has been followed by these companies, said B M Bansal, director in Indian Oil. The same strategy, such as selling the fuels of premium grade might also be followed by Indian Oil in near future.

Indonesia, the leading petroleum market in ASEAN region, is estimated to have 50 MTPA of petroleum products at present. For pursuing upcoming opportunities in Indonesia?s petroleum retailing industry, IOCL has already got the approval from its board so as to set up a fully owned subsidiary there, he said.

Aromatic products such as Toulene, Benzene, Poly-propylene, and Xylene are imported in significant quantities in Indonesia. IOCL is making its presence largely felt in the pharmaceuticals industry and this proposal jives absolutely well with the firm?s globalization plan, as per a senior official. (*)