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Jakarta Post

Pertamina may borrow US$250m for subsidized fuel

  • Alfian

    The Jakarta Post

Jakarta   /   Sat, July 31 2010   /  10:19 am

State oil and gas firm PT Pertamina may use a US$250 million standby loan facility provided by 18 banks if subsidized fuel consumption exceeds this year’s quota.“We may possibly resort to using the loans if, for example, subsidized fuel consumption exceeds the
regulated quota,” Pertamina finance director M. Afdal Bahaudin said Friday.The revised 2010 state budget has capped this year’s subsidized-fuel consumption at 36.5 million kiloliters. But Afdal said the actual consumption might exceed the regulated volume.“Based on our estimates, the consumption could reach around 40 million kiloliters. If this happens, we will use the standby loans,” he said.On July 31 last year, Pertamina secured Rp 3 trillion and $400 million in loans from 18 domestic and foreign banks. Apart from the loans, the banks would also provide Pertamina with a total of US$250 million in standby loans th...