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Fire to cost Pertamina dearly

State owned oil company Pertamina has conceded losses from a massive blaze at the Plumpang depot in North Jakarta could continue to rise

Alfian and Dicky Christanto (The Jakarta Post)
Jakarta
Tue, January 20, 2009

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Fire to cost Pertamina dearly

State owned oil company Pertamina has conceded losses from a massive blaze at the Plumpang depot in North Jakarta could continue to rise.

Pertamina said Monday the fire that razed a storage tank of Premium gasoline had also affected fuel in two nearby tanks.

“Our rough estimation [of losses] is around Rp 15 billion. We have not included the future costs of contaminated fuel, largely caused by the water and foam used by firefighters to extinguish the flames, in our calculations,” Pertamina’s marketing and trade director Achmad Faisal told reporters.

The blaze, which raged from 9 p.m. Sunday until 6 a.m. Monday morning, led to the break down of storage tank No. 24, which held 3,000 kiloliters of Premium gasoline.  

“We still need to carry out laboratory tests on the fuel stored in tanks 22 and 23 to understand the extent of damage caused to our supplies, and also the overall cost to the company,” Faisal said.

These two tanks, saved from complete destruction by firefighters, store around 25,000 kiloliters of gasoline.

Despite the magnitude of the damage, Pertamina claimed there was no fuel shortage in sight.

“We have plenty of additional gasoline supplies in other depots at Cikampek, Padalarang and Merak which can be called upon very easily,” the company’s Corporate Communications Vice President Anang Rizkani Noor said.

National police Chief of Detectives Comr. Gen. Susno Duadji said police had not drawn any

conclusions as to the cause of the fire yet.

“We are following up on names and witnesses who were in the vicinity of the blaze at the time the tank exploded,” Susno said.

Jakarta police Chief Insp. Gen. Wahyono said police were in the process of questioning seven witnesses.

When asked whether the blast may be linked to any clandestine terrorist activities, police said it

was too early for any definite conclusions or suspicions to be drawn just yet. 

“Obviously we need to gather more evidence and carry out further investigations before we can answer such questions,” Susno said.

Just last October police arrested several suspects in Kelapa Gading, North Jakarta, only a few kilometers from the depot, on a suspicion of terrorism. Police believed the group was planning on blowing up the Plumpang depot in an attempt to incite unrest across the country.

Meanwhile, Fifth Deputy at the Coordinating Ministry for Politics, Law and Security Budi Utomo denied there were any links between the fire and terrorist activities.  

"We have not seen any indication of a terror attack yet," he told reporters.

He said several TV stations had misquoted a statement made by Minister Widodo AS about a strong indication of sabotage in relation to the blast.

Pertamina’s President Director Ari H. Soemarno played down suggestions the blaze was caused by substandard security arrangements at the depot.

Arie said security at the depot had always been of the highest quality and was subject to routine inspection.

“All tanks at the depot have received certification guaranteeing their security standards,” Arie said.

Pertamina was not the only victim of Sunday night's blaze. 

Pamri, a resident living in nearby Tanah Merah, fled his home when the inferno began and sought refuge beneath the Cakung overpass.

“I heard a big explosion. Initially I thought it was lightning but then the sky suddenly turned red like hell. I quickly fled with my wife and daughter,” Pamri said.

“Unfortunately, it seems somebody broke into my home in the process and stole Rp 10 million from my safety cabinet,” he said

Like other squatters in the area, Pamri lives in a home just 30 meters from the depot.

Upon visiting the scene, Vice President Jusuf Kalla expressed concern about the proximity of residents to the depot.

“Fuel depots should be clear of squatters. Imagine what would happen if one of them was cooking and sparks ignited a main fuel tank?” he said.

In Batam, President Susilo Bambang Yudhoyono called on residents to stay calm.

"I heard a lot of rumors circulating around that this fire was linked to sabotage or terrorism. I implore you not to entertain such rumors," the President said.

"Let the responsible parties, whether they be experts or police investigators, do their jobs.

"When the investigation is complete, we can provide a clear explanation to the public," he said.

"We can assure the supply of fuel will remain normal tomorrow."

Legislator Alvin Lie of Commission VII overseeing mining and energy urged the government to be transparent when reporting the cause of the fire.

“When reporting back to the public, the government should ensure they mention how much this blaze has cost and how it will affect Pertamina's services,” Alvin said.

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