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Pertamina still in denial about fuel shortages

Despite a recent rare, strong public rebuke by President Susilo Bambang Yudhoyono, state oil and gas firm PT Pertamina remains defiant there was never a widespread scarcity of Premium gasoline and diesel

The Jakarta Post
Jakarta
Thu, January 8, 2009

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Pertamina still in denial about fuel shortages

Despite a recent rare, strong public rebuke by President Susilo Bambang Yudhoyono, state oil and gas firm PT Pertamina remains defiant there was never a widespread scarcity of Premium gasoline and diesel.

Company president director Ari H. Soemarno insisted Wednesday the shortage had been isolated to 3 to 4 percent of Pertamina’s gas stations, and that those hiccups were caused by temporary delays in the company supply chain.

Ari was speaking to journalists after a meeting with Vice President Jusuf Kalla to discuss the supply of subsidized fuels.

No details emerged about what the company and the second-most powerful man in the country concluded, but Ari was courageous enough after the meeting to challenge the President’s recent rebuke.

“If they needed an additional five to 10 minutes to queue or look for other nearby stations, how can you call it a scarcity? They (motorists) sound spoiled to me,” he said as reported by Antara.

He said slowdowns in the supply chain had affected just 130 of the company’s 4,300 gas stations in the country. In Jakarta, shortages were reported at 57 of its 640 gas stations.

“So it is not true that there has been a scarcity,” Ari said.

Pertamina came under fire recently over a Premium gasoline scarcity, but the company said the shortages had been specific to a small numbers of gas stations.

It said the problem had been caused by payment delays due to the holiday season, which saw the temporary closure of most banks, and also by the company’s recent transition to a new online payment system.

However, Yudhoyono berated Pertamina on Monday for giving “excuses”.

“That’s wrong. There is no such thing as holiday when it comes to serving the people. There is no such excuse,” Yudhoyono said, triggering speculations Ari would soon be stripped of his current position.

Pertamina claims distribution has been normal since last Saturday.

On Wednesday afternoon, the company said its depot in Plumpang, North Jakarta, had distributed 10,376 kiloliters of fuels, or more than a half of Greater Jakarta’s daily need of 14,818 kiloliters.

Asked to respond to Yudhoyono’s criticism, he said: “I have no right to comment on the statement. That was fully under the authority of our shareholders (the government). I am ready to be replaced (as the president director) if that is what the shareholders want”.

Yudhoyono’s public rebuke was his second aimed at Pertamina’s management. He also chided the firm in mid 2008 amid a shortage of LPG.  

Ari has been leading Pertamina since 2006.

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