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.
Consumers find Pertamini convenient despite objections
Despite state-owned energy holding company Pertamina’s objections to the presence of unofficial gasoline kiosks known as Pertamini, there are those who find the service convenient, while it appears the kiosks remain safe from being shut down
Change Size
D
span>Despite state-owned energy holding company Pertamina’s objections to the presence of unofficial gasoline kiosks known as Pertamini, there are those who find the service convenient, while it appears the kiosks remain safe from being shut down.
Dewa Sadewa, a 26-year-old living in Central Jakarta, had been a frequent customer of such gasoline kiosks, as a Pertamini was located closer to his home than a gas station. He also did not need to wait in a long line.
“I usually refueled my motorbike at a Pertamini kiosk in the morning when I drove my mother to the market, which isn’t too far from my home,” he told The Jakarta Post on Monday.
“Because the market was near [my house], my mom didn’t want to wear a helmet. Riding a motorbike without a helmet to the gas station risks being ticketed [for a traffic violation].”
Dewa, however, no longer refuels at a Pertamini kiosk because fuel prices there have risen to Rp 2,000 (14 US cents), higher than at a Pertamina gas station.
“But if I was in an emergency, what choice would I have? I think I would have to buy from them again,” he added.
Pertamini, which is an unofficial fuel distributor, is divided into two categories: first, those that sell fuel in a conventional way by putting gasoline in a one-liter bottle and second, those that sell fuel using a dispenser mimicking the facility at an official gas station.
For the second category, the price of a fuel dispenser runs from Rp 8 million to Rp 33 million. A more expensive dispenser is equipped with a fuel filter.
The sellers who run the kiosks purchase the gasoline — mainly non-subsidized gasoline such as Pertamax series or Pertalite — directly from a Pertamina gas station. These gasoline kiosks can be found mainly in housing complexes or villages.
“Regarding the legality, it’s safe as we don’t have a regulation prohibiting the business. In fact, I think Pertamina’s fuel sales have been helped by Pertamini and they know it is for reselling,” said a fuel dispenser seller in Tangerang.
The presence of the gasoline kiosks has pushed Pertamina to take several measures to curb their existence, including by calling them illegal and launching its own gasoline kiosk called Pertashop, which sells Pertamina products, including gasoline.
Last week, Pertamina president director Nicke Widyawati said Pertamini was selling gasoline at a higher price than at Pertamina gas stations.
Nicke also accused Pertamini of compromising the purity of the fuel by mixing it with other substances, including water.
“Pertamini kiosks are illegal and we have urged BPH Migas [the Downstream Oil and Gas Regulatory Agency] to discipline them. […] The higher fuel prices also go against the government’s one-price fuel policy,” she was quoted by kontan.co.id as saying.
Pertamina has estimated that with the existence of the unofficial kiosks, subsidized Premium in Papua could be sold for Rp 20,000 per liter, 210 percent higher than the regulated price of Rp 6,450.
Many consumers believed Pertamina or the government had failed to ensure the price of fuel for end-users.
However, when asked about Nicke’s demand for a crackdown on illegal gasoline kiosks, BPH Migas chairman Fansurullah Asa said the agency could only discipline entities that had oil and gas sales permits.
“Hence, we must coordinate with the police as well as speed up the development of the official gasoline kiosks across Indonesia, not only those owned by Pertamina, but also private fuel sellers like ExxonMobil, Shell and Total,” he said.
Pertamina plans to expand fuel sales points through Pertashop to about 7,300 villages across the country by 2020.
In West Java alone, the company has established 11 Pertashops, eight of which are in Sukabumi, two in Ciamis and one in Garut. Most of them are operated in cooperation with village-owned enterprises.
When asked about the police’s view of the issue, National Police spokesperson Brig. Gen. Dedi Prasetyo said it would be unwise to crackdown on Pertamini, considering most of the owners were low-income people and lived in regions with a lack of gas stations.
“The benefit of it [to crackdown on Pertamini] isn’t too much. We cannot look at the problem only from a legal perspective. I think it would be a pity to discipline them, while we should actually focus on the oil and gas mafia that hoards the supply, causing higher fuel prices,” he said without elaboration.
