Pertamina rules timber firms to pay international price for fuel

The state-owned oil and gas company Pertamina has demanded timber companies in Kalimantan to pay international price for fuel purchase, the Balikpapan-based Kaltim Post daily reported.

In a letter issued to timber firms and its association, Pertamina reasoned that oil price had increased and timber companies were included in the category that must pay international price for its fuel purchase just like the private independent power producer or other foreign investment firms.

The government has subsidized domestic fuel price. The government will gradually reduce the subsidy starting next month.

The timber association or Apkindo has protested the new ruling. (*)