Fuel distribute entire Homeland, Ibrahim Hashim: Pertamina Not Monopoly But Encouraged To Availability Secured

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DR. Ibrahim Hasyim

Jakarta – While still adhering to the Act (Act) No. 8 of 1971 About the Company Mining and Oil and Gas Negara, Pertamina is the only player that distributes fuel oil (BBM) to the entire territory of the Republic of Indonesia (NKRI), because only Pertamina given that task.

Post-enactment of Law No. 22 of 2001 everything changed. The law of the presence of the market has been opened to the greatest possible extent, national private companies began to grow and grow quite rapidly. Conditions there are currently about 200 domestic private enterprises engaged in the downstream oil and gas sector.

Committee on Regulatory Agency for Upstream Oil and Gas (BPH Migas) Ibrahim Hasyim said, after 15 years the market opened, not all companies that develop. One reason is related to the issue of the supply chain.

“To be able to build the supply chain, must Enterprises strong both in terms of financial, human resources and technology. Most of the entities that obtain business licenses generally do not have that ability. Proven to be imported directly only a few, let alone who wants to build refineries and terminals. So the oil and gas industry it is a technology-intensive, capital and risk, “said Ibrahim, Monday (10/06/2015) in Jakarta.

This condition causes until today, Pertamina still the largest fuel distribution throughout the NKRI. According to him, the market share of Pertamina, which is still very large not only because Pertamina offensive, but rather the risk as a state which should cover the availability of national fuel to remote.

“Otherwise it is definitely going to be a shortage of fuel in the country. So instead of Pertamina to monopolize the supply and distribution but as ‘necessity’ in order to guarantee the availability of fuel to remote areas,” said Ibrahim.

Ibrahim acknowledged, Indonesian oil market conditions have not been entirely free of subsidies and distorting the market of these glasses Enterprises. They not only compete with other enterprises, but also related to government regulation of the dis-intensive for them, let alone policies domestic fuel prices are heavily influenced social policies.

As known until now only Pertamina who perform the supply and distribution of fuel to remote areas. While there is no national private enterprises that want to distribute to remote regions, especially dibelahan Eastern Indonesia.

“To encourage the development of infrastructure in the region, means it must provide incentives specific to the regulation consistent long-term. This is the alternative option available. Private certainly be counting profit rugiya and that was the key for the private sector. If the business is profitable, they will invest. Therefore the Government must give serious attention of the national fuel supply and distribution in the future, “he concluded.