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SOEs ink deals for fuel supply, micro loan insurance
As many as five state-owned enterprises (SOEs) inked partnership agreements on Thursday, paving the way for fuel supplies for sea transportation as well as loan insurance for micro businesses
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s many as five state-owned enterprises (SOEs) inked partnership agreements on Thursday, paving the way for fuel supplies for sea transportation as well as loan insurance for micro businesses.
The SOEs were state oil and gas company PT Pertamina, port operator PT Pelindo II or IPC, ferry operator PT ASDP Indonesia Ferry, lender Bank Rakyat Indonesia (BRI) and insurance firm PT Asuransi Jasa Indonesia (Jasindo).
They signed the agreements at Pertamina's headquarters, witnessed by SOEs Minister Rini Soemarno.
The first agreement, made between Pertamina and Pelindo, will see Pelindo develop a Pertamina fuel terminal at the former's Kalibaru Port, also known as New Priok Port, in North Jakarta.
The terminal will consist of several facilities, including fuel storage for ships and other vessels, and will have a capacity of handling 500,000 kiloliters of fuel.
No details have emerged regarding the amount of funds needed to develop the terminal.
However, Rini claimed that the new terminal would help increase Pertamina's storage capacity.
'By then, we will see its storage capacity reach 30 days from the current capacity of 18 to 20 days,' she said.
As reported previously, Pertamina has been looking for ways to boost its ability to stock up on fuel, including by utilizing storage tanks of other SOEs.
The firm attributes its current low-storage capacity to the operation of its aging oil refineries.
There are six oil refineries in the country at present, with a total designed capacity of more than one million barrels per day, but they no longer work at maximum capacity.
The increase to 30 days of storage capacity will be similar to Pertamina's old capacity, which was recorded 10 years ago.
Pelindo expects to complete the first phase of its Kalibaru construction in 2017, adding 4.5 million twenty-foot equivalent units (TEUs) of capacity to the existing port. By 2023, the total capacity will surge three times from the current level.
Meanwhile, the second agreement was inked between Pertamina and ASDP. Under the agreement, Pertamina will provide fuel products and lubricant for ferries operating within ASDP's network.
ASDP currently operates 31 branch offices that oversee more than 140 sea transportation routes across the country.
The last agreement was made between BRI and Jasindo, enabling the lender to provide insured loans to farmers and fishermen.
BRI micro, small and medium enterprises director Djarot Kusumayakti said that it targeted around Rp 1 trillion (US$75.73 million) of new micro loans to be disbursed in partnership with Jasindo.
'These farmers and fishermen usually face failure risks in the early days of their operations and that's what we need to cover. It will not be that expensive because it is only a short period of time,' Djarot said.
BRI, known for its extensive micro loan coverage, aims at posting 10 percent to 15 percent growth in its micro segment this year.
The target means that BRI is estimated to record at least Rp 168.63 trillion in micro lending by the end of 2015. As of March, it had reported Rp 157.5 trillion worth of micro loans.
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'By then, we will see its storage capacity reach 30 days from the current capacity of 18 to 20 days.'
