Pertamina delays its plan to borrow $550 million from foreign banks

Sate owned oil and gas company PT Pertamina has delayed its plan to borrow around US$550 million from foreign banks this month following the government’s disbursement of Rp 9.3 trillion in cash to cover fuel subsidy recently, the Bisnis Indonesia newspaper reported in its Saturday edition.

The subsidy amount is expected to meet Pertamina’s financing requirement for oil import in July.

Pertamina’s director of finance Alfred H. Rohimone said his company would not process the bridging loans, several banks at this moment.

“Yes, at this moment it’s not necessary. If the Rp 9.3 trillion is finished, as per the Cabinet decision, Pertamina will ask the government again. If we have to borrow, we will borrow later from the banks."

Earlier, Pertamina had been searching for bank loans to pay for the oil imports. Several foreign banks like UOB, Fortis Bank and BNP Paribas have offered a total amount of $550 million loan.(*)