The Jakarta Post
State-owned oil and gas holding firm Pertamina is preparing for lower profitability following the government’s decision to pass onto the company’s shoulders burdens stemming from a global crude price increase.
The government has ordered Pertamina to maintain the price of Premium gasoline and subsidized diesel Solar at Rp 6,450 (47 US cents) and Rp 5,150 per liter, respectively, until 2019. These figures have been in place since April 2016, though actual economy prices averaged at Rp 7,250 and Rp 6,600 per liter throughout last year.
Subsequently, Pertamina lost potential revenues of around $2.05 billion in 2017, leading to a 24 percent annual decrease in its net profit to $2.41 billion.
The firm has also calculated that with the Indonesian Crude Price (ICP) maintained at $60 per barrel, its net profit would plummet to $1.7 billion this year and $1 billion in 2019...