Indonesia: Pertamina Imports Diesel Fuel Due to Lack of Supply

Indonesia: Pertamina Imports Diesel Fuel Due to Lack of Supply

State-owned oil and gas company PT Pertamina (Persero) has imported 1.2
million barrel diesel fuel following the shutdown of the company's refinery
in the last two months.

Pertamina deputy director Ahmad Bambang said that the company had decided to
import diesel fuel as fuel stock plummeted to below 20 days-the normal rate
being 23 days. According to him, the decline in fuel stock was due to
increasing demand for diesel fuel from mining industry as coal prices rose
at the turn of the year.

"The estimate is too low in the last three months. Apparently, it increased
by over 2 million in the market," Bambang said yesterday in Jakarta.

Fuel stock continues to worsen after Balikpapan refinery suddenly shuts down
on December 2. The refinery with an output of 43 million tons of diesel fuel
was halted its operation once again on December 11. It even stopped
producing diesel fuel for over 24 hours since January 15.

Energy Ministry had approved Pertamina's import proposal. Director for
Downstream Oil and Gas Business Setyorini Tri Hutami said that the ministry
has allowed gasoline import as well. "Import recommendation has been
approved for the next six months," she said.

Many have questioned the decision to import diesel fuel. Pertamina typically
made the decision three months before the import. In this instance, the
company made the decision in December to import diesel fuel for January. The
decision contradicts October's meeting result that Pertamina will not import
diesel fuel, among others.

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Link to Original Article:
https://en.tempo.co/read/news/2017/01/25/056839557/Pertamina-Imports-Diesel-
Fuel-Due-to-Lack-of-Supply

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com