The fate of fuel storage in Jakarta not clear
Monday, August 7 2000 - 03:00 AM WIB
The development of fuel storage in Balaraja, Cisoka, Tangerang, to support the current Plumpang fuel storage, has been abandoned because of the economic crisis and there is no indication when the project will resume.
The spokesmen for state oil and gas firm Pertamina, Ridwan Nyak Baik and Adiatma Sardjito, told Kompas that Pertamina had appointed PT Pandanwangi Sekartaji, owned by Bambang Trihatmodjo and Johannes Kotjo, to develop the Balaraja fuel storage on a 20 hectare land with a built and rent scheme.
However, because of the economic crisis, the development was postponed, and Pertamina - following the fall of former president Soeharto - demanded that Pandanwangi lower the rent cost for the Balaraja fuel storage following strong indications of corruption, collusion and nepotism in the awarding of the project to Pandanwangi.
"Pertamina wants the rent at the lowest level, so that it would not increase significantly the fuel subsidy the government has to pay," Adiatma said.
Adiatma and Ridwan said that the Plumpang fuel storage in Jakarta could not anymore support supplies for all Jakarta areas. Plumpang storage could accommodate up to 300,974 kilo liters of fuel, while fuel demands in the capital continue to increase.
The Balaraja fuel storage will be connected through piping network with Plumpang fuel storage in Jakarta and the fuel transit terminal in Tanjunggerem, Merak, and West Java.
The main contractor for the project is a consortium of Van der Horst and Teguh Sakti, with PT Pumijlloyd Indonesia as subcontractor and PT Patramitra Artaguna as project manager. (*)