The city administration has agreed to pay Rp 9
The city administration has agreed to pay Rp 9.5 billion (US$819,607) owed in debt to PT Petross Gas, a compressed natural gas (CNG) supplier for Transjakarta buses, to end the dispute between the two parties.
The payment is expected to allow Petross to pay debt owed to state gas company PGN, city secretary Muhayat said Tuesday.
"The money is payment for Petross's services from May 26, 2006, to March 2008," said Muhayat at city hall.
"This is an emergency situation; if we don't pay the debt, it may affect public services," he said, adding the administration would use reserve funds to service the debt.
The debt settlement will allow three idle CNG stations to start serving Transjakarta buses.
This year, the administration has Rp 50 billion of reserve funds available for unexpected projects. Muhayat also said the administration would review the agreement between the two parties.
"We have taken this issue to the State Development Finance Comptroller *BPKP* and asked for an audit of the agreement. We will wait for the decision and follow its ruling," he said.
Edith Alhidayat, Petross's financial director, hopes the administration will pay the Rp 9.5 billion debt.
"We need the money to pay our debt to PGN," she said.
The dispute between the administration and Petross has been ongoing. Previoulsy Petross claimed the administration had breached their agreement.
Based on the agreement, Petross must build gas filling stations to serve Transjakarta buses, while the administration must ensure the procurement of the gas from PGN.
Andika Anindyaguna Hermanto, Petross's director, said it was the responsibility of the administration to make transactions with PGN. Petross, he said, should not involve itself in the buying and selling process. In reality, he said, Petross was currently the one dealing with PGN to provide the gas.
Petross supplies CNG to Transjakarta buses operating on corridors 2 and 3. It runs two CNG stations, on Jl. Perintis Kemerdekaan in East Jakarta and in Rawa Buaya in West Jakarta.The Perintis Kemerdekaan station supplies CNG to buses running along corridor 2, which serves Pulo Gadung in East Jakarta to Harmoni, while the Rawa Buaya station serves buses running on Corridor 3, which connects Harmoni in Central Jakarta to Kalideres in West Jakarta.
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