TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Saudi Aramco wants to enter the gas station business
Darmin Nasution (JP/Ricky Yudhistira)Saudi Aramco, the world's biggest crude oil producer, has asked to enter Indonesia's downstream oil sector, specifically fuel distribution in the domestic market
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Darmin Nasution (JP/Ricky Yudhistira) (JP/Ricky Yudhistira)
Darmin Nasution (JP/Ricky Yudhistira)
Saudi Aramco, the world's biggest crude oil producer, has asked to enter Indonesia's downstream oil sector, specifically fuel distribution in the domestic market.
According to Coordinating Economic Minister Darmin Nasution on Wednesday, the company has been intending to enter Indonesia's market for a while now. But its latest request was a permit to enter the country's downstream oil sector.
"Saudi Aramco wants to sell fuel [BBM]," said Darmin as quoted by kontan.co.id.
He said that state-owned oil and gas company Pertamina had objected to the plan due to concerns over price competition.
He added that the objection did not meant Pertamina wanted to continue its monopoly in Indonesia's downstream sector.
Separately, Pertamina Marketing Director Ahmad Bambang told kontan.co.id that he was not yet informed regarding the matter.
"I don't know in what form [Saudi Aramco] will enter Indonesia. [I doubt] Pertamina's objection could hold back Shell and Total [from entering Indonesia]," said Ahmad.
He added that the oil and gas business in the country is now wide open. If Saudi Aramco wants to enter the gas filling station (SPBU) business, it can easily ask for a permit from the Oil and Gas Directorate General (Dirjen Migas) and the Downstream Oil and Gas Regulatory Agency (BPH Migas). As for a permit regarding the development of fuel depot terminals, it should join the auction instead.
According to a report by kontan.co.id, several countries had revealed their intentions to invest in Indonesia's oil and gas business, including Saudi Arabia, Canada, Kuwait, Iraq, Iran and South Korea. But only Saudi Arabia's Saudi Aramco that had made an investment commitment to build a refinery, fuel storage tank and distribution system worth US$10 billion. (kes)(++++)
