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Jakarta Post

Pertamina inks fuel deals with mining, airline, airport operator SOEs

  • News Desk

    The Jakarta Post

Jakarta   /   Fri, March 15, 2019   /   08:13 am
Pertamina inks fuel deals with mining, airline, airport operator SOEs The logo of state-owned oil and gas holding company Pertamina (Courtesy of/3dwarehouse.sketchup.com)

In coordination with the State-Owned Enterprises Ministry, state energy holding company Pertamina signed three separate deals with several state-owned enterprises (SOEs) that run businesses in mining, aviation and airport operatorship.

Under the deal, Pertamina will supply fuel needed by the SOEs.

Pertamina president director Nicke Widyawati said under the deal with the three subsidiaries of state-owned mining holding company PT Indonesia Asahan Aluminium -- PT Bukit Asam, PT Antam and PT Timah -- Pertamina would supply the companies with biodiesel and marine fuel oil (MFO) for five years.

“The sales of biosolar and MFO 180 will be increased from 25,000 kiloliters [kl] per month to 40,000 kl,” she said.

Meanwhile, for the deal with two state-owned airport operators -- PT Angkasa Pura (AP) I and PT Angkasa Pura (AP) II -- Pertamina will be involved in airport development projects, particularly in the construction of fuel depots.

PT AP I president director Faik Fahmi said Pertamina would be included for the first time in the long-term investment of fuel depot construction as previously they only had a short-term contract, whereby Pertamina only rented a spot to place their fuel depot. PT AP I currently manages 13 airports across Indonesia.

There are at least three airport development projects that could involve Pertamina as a partner in a long-term contract to build fuel depots. The three are Sultan Hasanuddin Airport in Makassar, Syamsudin Noor International Airport in Banjarmasin and I Gusti Ngurah Rai International Airport in Bali. 

Meanwhile, with flag carrier PT Garuda Indonesia, Pertamina will become the sole fuel supplier for airplanes serving foreign destinations.

Garuda Indonesia president director Ari Askhara said the deal with Pertamina would eliminate the hassle of the jet-fuel tender process in the global market and he expected that Garuda would get better prices if the fuel was purchased from other suppliers.

“Usually, we get our jet fuel supply through a tender process. Under the agreement, Pertamina will become Garuda's sole supplier for our 14 stations in foreign countries,” he said, adding that currently Pertamina supplied half of Garuda’s 14 stations in other countries. (bbn)