Pertamina to seek loans to finance fuel, crude oil imports

State-owned oil and gas firm PT Pertamina plans to seek loans from both domestic and foreign banks to help finance fuel and crude oil imports.

Pertamina's director of finance Alfred Rohimone said on Friday that the decision to seek loans was made because the monthly subsidy amount of Rp 1.2 trillion or about US$126 milion provided by the government and the around $400 million monthly proceeds from the sale of fuel on the domestic market would not be enough to pay the monthly import bill of $1.1 to $1.3 billion.

"We must seek loans either from domestic or foreign sources. We have already got the green light from the board of commissioners. At least for one month's requirement," Alfred said.

Alfred however didn't want to mention the exact figure of the amount Pertamina wanted to borrow and the bank.

"Yes, we will take loan according to our requirement. If the bank gives $1 billion, we will take it. If (the banks give) $500 million, we will also take it," Alfred said. (dino)