Six bidders compete for 2011 subsidized fuel distribution right

The government?s tender for the distribution of subsidized fuel in 2011 has attracted few bidders as only six of 15 companies which had taken bidding documents would continue with their bids.

"Only six companies have so far returned their bidding documents,? downstream oil and gas regulator BPH Migas Tubagus Haryono said.

The six companies are PT Pertamina (Persero) PT Aneka Kimia Raya Corporindo Tbk, PT Elnusa Tbk, PT Petronas Niaga Indonesia, PT Shell Indonesia, and PT Total Oil Indonesia.

BPH Migas earlier said that it had invited as many as 34 companies to take part in the tender to distribute subsidized fuel for next year. However, only 15 of them took bidding documents.

The companies which took bidding documents included PT Pertamina, PT Elnusa Petrofin, PT Patra Niaga, PT Petrobas, PT AKR Corporindo Tbk, TPPI, PT Petronas Niaga Indonesia, PT Bumi Asri Prima Pratama, dan PT Total Oil Indonesia, PT Premindo Mitra Kencana, PT Shell Indonesia, PT Petro Andalan Nusantara, PT Usaha Gemilang Utama, PT Usaha Catur Mitra, and PT Lingga Perdana.

A member of the board of commission at BPH Migas, said that many companies withdrew from the tender because most of them were ready with the minimum distribution facilities required by the agency. ?They are not interested to join the tender because they are not yet ready with infrastructure requirement,? he added.

This year, government is offering a subsidy quota totalling 500.56 kiloliters per day or about 182,704 kiloliter per year for Premium gasoline and 579.79 kiloliters per day or about 211,624 kiloliters per year for diesel oil, he said.

The tender is for rights to distribute diesel oil in 22 provinces outside java and to distribute Premium gasoline in 20 provinces outside java. (godang)