Govt appoints Pertamina as subsidized fuel supplier in 2008

Eight oil companies, namely Pertamina, PT Petronas Niaga Indonesia, PT Aneka Kimia Raya (AKR), PT Shell Indonesia, PT Total ERP Indonesia, PT Elnusa Petrofin, PT Sigma Rancang Perdana, and PT Jasatama Petroindo had earlier expressed interest in taking part in the tender.
But only three of them, namely Pertamina, Petronas and Aneka Kimia Karya were prepared to take part in the verification process held by BPH Migas.
Based on the results of verification, only Pertamina proved to meet the requirements.
So far, only Pertamina has been distributing subsidized fuel oil in the country.
The 2008 state budget has set the amount of distribution cost plus profit for the company appointed as a subsidized fuel oil supplier and distributor at 13.5 percent compared to 14.1 percent a year earlier.
In the 2008 state budget, the government has set the volume of subsidized fuel oil at 35.87 million kiloliters, consisting of premium-grade gasoline (16.95 million kiloliters), kerosene (7.87 million kiloliters) and diesel oil (11 million kiloliters). The total fuel subsidy this year is set at Rp42.1 trillion.