Indonesia to grant soft loans to 295 gasoline stations

The Indonesian government said it will prepare Rp500 billion (US$9.75 billion) in soft loans to enable 295 gas stations to sell non-subsidized Pertamax gasoline, which is specially made by state oil company Pertamina. The move is part of the government’s program which aims to limit the sale of subsidized fuels in Java and Bali beginning in April this year. The availability of the funds will be incorporated in the revised state budget for 2012. “We have got assurance from the Finance Ministry that there are Rp500 billion in funds for soft loans to gasoline stations,” said Evita Legowo, director general of Oil and Gas at the Energy and Mineral Resources Ministry. Legowo said that program will be implemented in several stages, beginning with Jakarta and its suburbs because Pertamina is not yet ready to implement the program nationwide. Pertamina spokesman M. Harun said that each of the 295 gasoline stations need an investment of Rp393 million (US$7.66 million), or a total of Rp 115.9 billion (US$2.26 billion). In Bali and Java, there are currently 2,080, out of 3,062, gasoline stations selling Pertamax gasoline. There are 687 stations that need to change their ground tanks and 295 others that need capital infusion to be able to sell Pertamax gasoline. (February 2, 2012)