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Economy in brief: Saudi Aramco plans to sell fuel in Indonesia
Saudi Aramco, the worldâs biggest crude oil producer, is seeking to enter Indonesiaâs downstream oil sector, specifically fuel distribution in the domestic market
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audi Aramco, the world's biggest crude oil producer, is seeking to enter Indonesia's downstream oil sector, specifically fuel distribution in the domestic market.
According to Coordinating Economic Minister Darmin Nasution, the company has been intending to enter Indonesia's market for a while now and its latest request was a permit to enter the country's downstream oil sector.
'Saudi Aramco wants to sell fuel,' 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, adding that the objection did not mean Pertamina wanted to have a monopoly in Indonesia's downstream sector.
Separately, Pertamina marketing director Ahmad Bambang said that he had not yet been informed about the matter. 'I don't know in what form [Saudi Aramco] will enter Indonesia. Pertamina's objection could [not] hold back Shell and Total [from entering Indonesia],' said Ahmad.
He added that the oil and gas business in the country was now wide open. If Saudi Aramco wishes to enter the filling station business, it must get a permit from the Oil and Gas Directorate General and the Downstream Oil and Gas Regulatory Agency (BPH Migas). To get a permit for the development of fuel depot terminals it would need to go through a bidding process.
