Pertamina asks govt to issue decree on fuel purchase at international price
Thursday, December 14 2000 - 11:30 AM WIB
State oil and gas company Pertamina's president Baihaki Hakim called on Thursday on the government to soon issue a decree obliging export-oriented companies to buy fuel from the state company at international price.
Baihaki said Pertamina had been asked by the government to impose international price for fuel on export oriented companies but the state company found it difficult to implement the policy due the absence of such a decree.
He said many export-oriented companies turned down the international price proposal, insisting on paying Pertamina at subsidized price for its fuel supplies.
"We are really in difficulty. We have been asked to negotiate with the export oriented companies that they may buy our fuel at international price, but many companies insist to buy the fuel at low price.
He said one of the companies, which insist on buying fuel from Pertamina at low price, is plantation and fishery company Djajanti Group, which is based in Maluku and Irian Jaya.
"Thus, we call on the government to soon issue the decree," Baihaki said.
According to Baihaki, if all country's export-oriented companies buy fuel from Pertamina at international price, the government's subsidy for fuel could be cut by Rp 9 trillion per year (US$1= Rp 9,465). (Godang)