Pertamina tenders property insurance coverage

State oil and gas company Pertamina has invited 12 local insurance companies to participate in the tendering of insurance coverage for its office building properties, Neraca daily reported on Tuesday.

The winner of the tender would become the so-called ceding company, the first such company outside PT Tugu Pratama Indonesia that has been monopolizing insurance coverage for Pertamina's oil and gas projects.

"The tendering process is currently being prepared by inviting 12 insurance firms to file their proposals to Pertamina," said one source from local re-insurance industry.

The source, however, refused to reveal the value of the insurance protection because it was still being tendered. But he noted that the value would be big because it covers all office buildings belonging to Pertamina. But of course, the coverage value would not be as big as those covered by Tugu Pratama.

Nevertheless, the tendering of the insurance coverage shows a good will in the part of Pertamina that had never allowed other local insurance companies to break Tugu Pratama's insurance monopoly for so long. (*)