Pertamina stops bare boat hire purchase system
Wednesday, July 5 2000 - 03:15 AM WIB
State oil firm Pertamina will stop disbursing funds to buy vessels using a controversial bare boat hire purchase (BBHP) system.
The head of Pertamina's shipping and communication division, Sumarsono, said that based on an audit by the Development and Finance Comptroller (BPKP), buying vessel using that system turns out to be a lot more expensive.
"Pertamina prefers using charter system. Now we have chartered 115 vessels, besides our 35 own vessels," he said when launching tanker MT Pandan in Kodja Bahari dockyard.
In 1997, Pertamina ordered 11 tankers worth US$180 million through bare boat hire purchase system. And MT Pandan tanker is one of the 11 vessels.
The financing for MT Pandan, worth US$6.25 million, is provided by the Southern Ocean Maritime
MT Pandan will be operated by PT Citramaritimindo Pratama, which will then lease the tanker to Pertamina. After eight years of lease, the tanker will be owned by Pertamina.
Meanwhile, an executive at the Assotiation of Shipyard Companies (Iperindo), Joeswanto Karijodimedjo, said that Pertamian's decision to stop purchasing vessels using BBHP and long-term term charter (LTTC) system would left local shipyard companies with less and less works.
"Out of 80 Iperindo members, only 50 companies are active now," Joeswanto.
He warned that Pertamina's decision to stop buying vessels using BBHP and LTTC system would eventually reduce Indonesian-flag vessels, and the transportation of Pertamina's crude would be dominated by foreign vessels. (*)