Pertamina?s monopoly in aviation fuel supply will be removed soon: Hatta

The government will soon liberalize the supply of aviation fuel to domestic and international airlines. This liberalization will end the monopoly of the Pertamina Aviation, subsidiary of state oil and gas firm PT Pertamina, Bisnis Indonesia reported in its Friday edition.

Minister of Transportation M. Hatta Rajasa said the liberalization is hoped to facilitate opportunity for at least two to three companies to supply aviation fuel at several airports in the country.

?The supply of aviation fuel will be supplied later by not only Pertamina but also by two to three other companies,? Hatta said while opening the general body meeting of the Indonesian National Association for Civil Association (INACA) in Nusa Dua Bali on Thursday.

Currently, according to Hatta, the government is preparing a new regulation on the supply of aviation fuel to ignite a healthy competition among companies. He added that the competition will be expected to change the face of the aviation fuel business and to enhance the efficiency in providing a good service at the airports.

The Minister said the government will soon implement the new policy at Juanda Airport in Surabaya in East Java on a trial basis.

?In one or two months we will host the beauty contest in Surabaya,? Hatta said. Hatta declined to reveal the names of the companies which will enter into this aviation fuel business. But he admitted that several companies have already applied for permission from the government

Meanwhile, Association of Asia Pacific Airlines director general Andrew Herdman said the government?s plan to liberalize the aviation fuel business will improve the service of airlines.

?It?s a positive development because it will improve the efficiency (of the industry) at a time when the fuel prices are continuously growing up,? Andrew said.

INACA?s secretary general has also welcomed the government?s move. He said the liberalization will reduce unnecessary costs for the airlines, without elaborating further.

Meanwhile, Pertamina?s spokesperson Muhammad Harun said Indonesia?s aviation market has already become a target of foreign companies.

?We never have shortage of aviation fuel in serving our customers. So there is no reason to give the market to foreign companies,? Harun said. (*)