Pertamina asked to review international price fuel policy
Thursday, January 4 2001 - 11:00 AM WIB
The South Kalimantan administration has asked state oil and gas company Pertamina to review its policy of imposing international prices for fuels sold to export oriented companies.
Head of the province's industry and trade office Muhammad Muchlis said he had sent a letter to Pertamina through Minister of Industry and Trade Luhut B. Pandjaitan, containing the request to review the policy.
He made the letter in response to the protests of the plywood exporters operating in the province over the policy, Muchlis was quoted by Kompas daily as saying.
He said Pertamina issued in September, 2000 a letter announcing its decision to sell fuel to export-oriented companies at international prices in a bid to cut down the government's fuel subsidies.
He said he was informed that the international pricing scheme was not only implemented in the province but also elsewhere in the country.
The provincial branch of the Indonesian Association of Plywood Producers (Apkindo), has officially asked his office to lobby against the fuel pricing policy, Muchlis said.
Executive secretary of South Kalimantan's branch of Apkindo warned of plywood producers' bankruptcy if Pertamina insisted on implementing the pricing policy.
He said plywood producers have been already been depressed by the slump in plywood prices and labor problems. (*)