Pertamina to upgrade gas stations

State-owned oil company PT Pertamina will improve the service standard of its gas stations in facing competition from other companies following the opening of the sector for private business as of November 23, its marketing and commerce director, Arie Sumarno, said to ANTARA on Monday.

He said Pertamina would not want to lose its customers after the opening of the free market. "We have to be ready to compete with other companies both local and foreign in the market of supplying fuel oils in Indonesia, he said.

He said only 40 percent of Pertamina's 3,150 gas stations that had been jointly operated with private parties met the service standard set by Pertamina and were ready to compete with other companies.

He said Pertamina's standards for its gas stations included quality guarantee of the fuel oils sold by the stations, availability of support facilities such as bathrooms, a room for prayers, and a store.

He said Pertamina would provide assistance to operators who wished to improve the service standard of their gas stations.

Under the Oil and Gas Law Number 22 of 2001, local as well as foreign comapnies are allowed to operate in the oil and gas sector from upstream to downstream businesses.

Multinational oil company Shell was the first oil company other than Pertamina to operate a gas station in the country.

The gas station belonging to the company based in Britain has been operating in the Lippo Karawaci housing estate as of November 1.

Shell plans to set up 400 gas stations across the country in eight years' time.(*)