Pertamina?s ISC generates $208.1m cost saving

State-owned oil and gas firm PT Pertamina said that its Integrated Supply Chain (ISC) division contributed last year about US$208.1 million of cost savings through efficiency and transparency in the import of crude and oil fuels.

The ISC division has taken over the role of the now dissolved Pertamina Enegy Trading Ltd (or better known as Petral) following allegations of graft practices committed by the latter.

Pertamina Vice President for Communications Wianda Pusponegoro said in a statement Monday that the cost saving contributed by ISC was the result of various programs together called ISC 1.0 including cutting down middlemen in the import process, optimum use of own vessels, increasing the number of participants in fuel tender, and ensuring transparency in the tender process.

Wianda added that Pertamina has also managed to renegotiate crude supply contract with Saudi Aramco (about 120,000 bpd), in which Pertamina has no longer been required since June of last year to issue letter of credit.

Editing by Reiner Simanjuntak