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Jakarta Post

Govt slashes Pertamina’s oil import quota

  • Norman Harsono

    The Jakarta Post

Jakarta   /   Fri, January 17 2020   /  01:57 am

The government has ordered state-owned oil company Pertamina to reduce its oil imports this year to dampen Indonesia’s trade deficit, which puts pressure on the rupiah exchange rate.An Energy and Mineral Resources Ministry official told reporters in Jakarta on Tuesday that his office had issued a letter that capped Pertamina’s import quota at about 50 million barrels this year. The company initially asked to import about 80 million barrels.“I limit their import quota to 8,000 barrels per day [bpd] for 2020,” said the ministry’s acting oil and gas director general, Djoko Siswanto. “So they would try to buy local crude oil and continue to negotiate for production that has not yet been bought.”Djoko made the decision following the issuance of Ministerial Regulation No. 42/2018 that requires Pertamina to prioritize buying crude oil from domestic sources at market prices instead...