Pertamina hopes to control all of the government?s refinery plants
Tuesday, October 1 2002 - 03:53 AM WIB
"Although the decision is on the hands of the government, we will make our best efforts to retain the control of the refinery plants and their assets," Pertamina?s president director Baihaki Hakim said when commenting a press report that the World Bank had asked the Indonesian government to separate major refinery plants from the stated owned oil and gas company.
Baihaki acknowledged that Pertamina had formally filed a proposal to the Ministry of Mines and Energy about the future operation of the government?s refinery plants. "We have not yet received the reply of the proposal but Pertamina will continue to control the refinery plants before a formal decision is made," he said.
When asked about the WB?s proposal, Baihaki said; "The WB?s proposal is another case. More over, its request is addressed to Finance Minister not to the Ministry of Energy and Mineral Resources," he added.
He accused that some world?s oil giants have used the WB in their efforts to control the country?s oil retail sector which, according to the new oil and gas law, will be soon opened to foreign companies. According to Baihaki said that the separation of the government ?s major refinery plants from its Pertamina?s operation is part of the game to eliminate Pertamina?s competitive edges. "If the major power plants -- which have been installed as part of the country?s integrated fuel distribution -- are separated, Pertamina?s refinery operation would no longer competitive," he added.
Baihaki earlier 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. (*)