Pertamina loses out at the pump

Indonesia’s downstream regulator BPHMigas is facing many complex issues in liberalizing the vast archipelago’s retail fuel market. It would probably tap state-owned Pertamina to remain the sole distributor of government-subsidized oil products for another year in 2008. Under the country’s Oil and Gas Law No. 22 of 2001, the company was initially expected to shoulder the “public service obligation” of selling subsidized fuel only until November 23, 2005. BPHMigas plans to eventually issue a tender for the prospective new players to vie for the position of subsidized fuel distributor. (September 11, 2007)