Oil and gas workers oppose proposal to sell Pertamina?s refinery plants

Workers union in oil and gas related activities have opposed the World Bank?s proposal to sell Pertamina?s oil refinery plants in Balikpapan, East Kalimantan and in Cilacap, Central Java to private companies, saying that the sale would cause a great loss to the public.

The coordinator of the oil and gas workers? union in Kalimantan, Djauhari Kunsetyanto said in Balikpapan on Wednesday that the proposed sale of the two plants ? among the largest in the country -- was only a ploy made by the World Bank to control Pertamina?s assets.

The World Bank has proposed the Ministry of Finance to privatize parts of Pertamina?s profitable assets such as the two refinery plants in efforts to fill in the government?s budget deficit.

Pertamina?s president director Baihaki Hakim earlier accused the World Bank?s privatization as a ploy made by world?s major oil companies to control the country?s fuel retail sector which will be gradually opened to private companies.

According to Baihaki said that the sale of Pertamina?s major refinery plants is part of the game to eliminate Pertamina?s competitive edges. "If the major power plants -- which have been built as part of the country?s integrated fuel distribution -- are sold to private companies, Pertamina?s refinery operation would no longer be competitive," he added.

Baihaki said that based on the current fuel pricing system, it would be difficult for foreign companies to compete with Pertamina in the domestic fuel retail market. He had also demanded that foreign companies which are allowed to operate in the fuel retail sector should be requested to provide fuel stocks for up to 50 days to ensure sustainable fuel supply. (*)