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Jakarta Post

Jakarta seals Shell gas stations over expired permits

The Jakarta administration has sealed five Shell gas stations in South, West and Central Jakarta, citing the company’s failure to extend business permits

Andreas D. Arditya (The Jakarta Post)
Jakarta
Sat, April 28, 2012 Published on Apr. 28, 2012 Published on 2012-04-28T08:52:07+07:00

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T

he Jakarta administration has sealed five Shell gas stations in South, West and Central Jakarta, citing the company’s failure to extend business permits.

City Energy and Industry Agency chief, Andi Baso, said Friday that the administration had sealed the five stations since Tuesday.

“Fuel business permits at all five stations expired last month, but we have received no proposal to extend the permit,” Andi told reporters at City Hall.

He said the agency had sent the company three warning letters regarding the expired permits.

“But we have received no response. As regulation dictates, we have to seal the stations,” Andi said.

The five stations are located at Jl. Kyai Tapa in West Jakarta, Jl. MT Haryono, Jl. Mampang Prapatan Raya and Jl. Gatot Subroto in South Jakarta and Jl. R. Soeprapto in Central Jakarta.

Andi said that the permit was to be extended every five years. Each permit extension requires an installation examination, he explained.

“We are not trying to prevent anyone from doing business in the city, but there are regulations to obey,” Andi said.

In a press statement, Shell Indonesia media relations manager Sri Wahyu Endah confirmed the closing of the five stations, but did not offer further details on the issue.

“We are engaging with the relevant authorities on the matter. We regret any inconvenience caused to our loyal customers,” Sri Wahyu said in a letter sent to The Jakarta Post.

Shell operates a total of 52 gas stations in the Greater Jakarta area. The company started its commercial fuels business in Indonesia providing bulk fuels and related technical support to the industrial and transport sectors.

Jakarta Construction Supervision and Regulation Agency chief I Putu Ngurah Indiana said that in general, fuel retail businesses always obeyed regulations.

“They involve large investments. Almost all fuel retail businesses never fail to follow regulations,” I Putu said.

In another development, the City Police had started questioning witnesses regarding an explosion at a gas station in Palmerah, South Jakarta, on Thursday afternoon.

A pipe for an underground fuel tank exploded when two workers, Saimin and Deden Rohana, were welding it. The explosion killed the former and seriously injured the later.

Gas station manager Eni said that in an effort to prevent combustion, management had drained the tank and had it filled with water for a month before the welding began.

According to the police investigation, however, there were still fuel remnants in the tank.

“The fire from the welding triggered the explosion,” Jakarta Police spokesman Sr. Comr. Rikwanto said on Friday.

He also said that the police would contact state oil and gas firm PT Pertamina regarding the standard operating procedure for welding a fuel tank.

“Based on the investigation, the police found that the management had been negligent because they hired non-skilled professional welders to mend the fuel tank,” he said, adding that the police would soon summon the gas station’s manager. (riz)

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