Pertamina plans to close two refineries

The state-owned oil and gas company Pertamina plans to close down the Pangkalan Brandan refinery unit in North Sumatra, and the Sorong refinery unit in Irian Jaya because the two refineries had not been profitable, according to company president Baihaki Hakim.

Baihaki said Sunday that the closure may take place once Pertamina had become a limited liability company, pointing out that under the status the government could no longer intervene on the company.

?After transforming into PT (limited liability company) the government can no longer intervene in Pertamina activity. We have to choose which businesses are profitable, and which are not. If the two refineries continue to make loss there?s no reason for us to retain them,? he said on the sidelines of a company meeting.

But Baihaki promised that the company would also consider the aspiration of the regions in closing down the two refinery units.

Two years ago, Pertamina had already planned to shut down the units but was delayed after considering the demand of the regional administration to maintain the refineries.(arry)