Total enters Indonesia?s fuel retail market

French oil giant Total S.A has opened its first gasoline stations in Indonesia, further adding the competition in the country?s fuel retail market.

Through its Indonesian unit Total Indonesia, the company has opened two gasoline stations in Jakarta -- one on Jl Daan Mogot and another one on Jl. MT Haryono.

Thierry Pflimlin, the senior vice president for refining and marketing of Total Oil Asia Pacific, said in Jakarta on Monday that the two outlets were part of five fuel stations to be opened by the company this year.

The other three fuel stations would be opened in Bumi Serpong Damai (BSD), Tangerang and Warung Buncit, South Jakarta. ?Our target is to build 200 fuel stations in the next five years,? he said.

Total will spend at least US$2 million for the opening of each gasoline station which is expected to sell about 10,000 liters a day, respectively. Total sells three types of non-subsidized fuels in its outlets including Performance 95 at a price of Rp 6,500 per liter (1US$ = Rp 11,575), Performance 92 at a price of Rp 5,900 and Performance Diesel at a price of Rp 6,900 per liter.

Besides selling non-subsidized fuel, Total also plans to distribute subsidized fuels currently sold solely by sate owned oil and gas firm PT Pertamina. ?At present, the sales of subsidized fuel are dominated by Pertamina. With our products and services, we also have the opportunity to sell the subsidized fuels,? Pflimlin said.

Dutch oil company Shell and Petronas of Malaysia are the first foreign firms to enter Indonesia?s fuel retail market since the government removed the exclusive rights awarded to Pertamina to distribute and sell fuels in the country in 2005.

Pertamina still handles the sales of subsidized fuels which account for more than 80 percent of the domestic fuel market as other companies are still unable to meet the requirements to distribute the subsidized fuels. (godang)