Indonesia: Petronas, AKR win fuel supply tenders

Indonesia’s state oil firm Pertamina has lost its exclusive right to distribute subsidised oil products in 2010 after a unit of Malaysia’s Petronas and a local firm won supply tenders, Reuters quoted a regulator as saying yesterday.

Petronas has won the right to distribute 20,440 kilolitres (128,547 barrels) of subsidised low-octane gasoline in Medan next year, the head of Indonesia’s downstream oil regulator, BPHMIGAS, said.

Indonesia’s PT Aneka Kimia Raya (AKR) Corporindo would also distribute 56,500 kilolitres (335,328 barrels) of subsidised diesel oil in Lampung province, in south Sumatra and in the cities of Banjarmasin and Pontianak in Kalimantan.

“By law, Petronas and PT AKR Corporindo are allowed to supply subsidised fuel. After we evaluated their capabilities in providing fuel, we selected them,” Tubagus Haryono, head of BPHMIGAS, told reporters.

The remaining subsidised fuel would be supplied by Pertamina in 2010.

Overall, the government planned to supply of 21.4 million kilolitres (134.5 million barrels) of subsidised gasoline and 11.2 million kilolitre of subsidised diesel oil in 2010, Haryono said.

This year, Indonesia expects 19.44 million kilolitres of subsidised low-octane gasoline and 11.6 million kilolitre of diesel to be supplied.

Pertamina’s monopoly over all sectors of the oil market was ended in 2001, and three years later Indonesia opened up its domestic downstream oil business to foreign firms, paving the way for them to directly import fuel and sell to local customers.

But Pertamina had up until now retained the exclusive rights to supply subsidised oil products which includes almost all products except for premium motor fuel in the domestic market.

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