Pertamina urges govt to quickly disburse crucial funds

Pertamina has appealed to the government to immediately disburse funds to cover the cost of importing crude oil purchase the state company made through pre-financial deal.

Pertamina president Widya Purnama was quoted by the Bisnis Indonesia daily as saying that the refund was crucial to help resolve the company's financial problem.

Widya said in Jakarta last week that the government delayed the disbursement of the fund although the state audit agency (BPK) had audited the crude transactions.

"We have sent a letter asking for the refund. No response has been made (by the government)," he said, adding that according to the existing procedure, the government should disburse the refund as soon as the audit has been completed.

Pertamina had spent at least US$600 million during the past two years to finance a pre-financing deal in its fuel procurement operation. The company purchased part of the country's crude oil needs through a pre-financing deal to protect its oil importing arm PT Pertamina Energy Trading Ltd from a price fluctuation. (*)