Tuesday, December 29, 2009

Pertamina shares distribution rights with Petronas, AKR

My liking for Indonesia has been growing due to their seriousness about reforms. You can see that these guys really got the ba**s to end the monopoly of Pertamia, while it's not a big deal to many but the message behind this is quite powerful - perform or you are out. This country has overtaken Malaysia as no 1 palm oil plantation in the world. They are also rich with commodity like coal, will do well with China continue to consume huge amount of comodity. The huge population of 250 million, we can make a case of internal consumption thesis as many of their poor will be lifted out from poverty to join the middle class. As we all know that their stock market has been performing remarkably well in 2009 and I think it will continue to do well in 2010.

JAKARTA: Indonesia's state oil firm Pertamina has lost its exclusive rights to distribute subsidised oil products in 2010 after a unit of Malaysia's Petronas and a local firm won supply tenders, a regulator said yesterday.

Petronas has won the rights to distribute 20,440 kilolitres of subsidised low-octane petrol in the city of Medan, Sumatra, next year, the head of Indonesia's downstream oil regulator BPH-MIGAS said.

Indonesia's PT Aneka Kimia Raya (AKR) Corporindo will also distribute 56,500 kilolitres barrels of subsidised diesel oil in Lampung province, in south Sumatra and in the cities of Banjarmasin and Pontianak in Kalimantan, Borneo island.

"By law, Petronas and PT AKR Corporindo are allowed to supply subsidised fuel. After we evaluated their capabilities in providing fuel, we selected them," Tubagus Haryono, head of BPH-MIGAS, said.

The remaining subsidised fuel will be supplied by Pertamina in 2010.


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