Pertamina opens first non-subsidized fuel gas station in South Jakarta

State-run oil and gas company PT Pertamina recently launched its first fuel station in Pondok Indah, South Jakarta, Indonesia, which sells only non-subsidized fuel. Hanung Budya Yuktyanta, the company’s marketing and trading director, said that Pertamina plans to open five more similar stations in the elite residential sections of Greater Jakarta. “This is our initiative to support the government’s plan to control the consumption of subsidized fuels. We predict that if we do nothing, this year’s consumption may hit 47 million kiloliters [kl], exceeding the quota of 40 million kl approved by the House of Representatives,” he said. Hanung added that the company hopes other fuel station owners will follow suit. As an incentive, Pertamina has increased the margins for non-subsidized fuels from Rp325 (US$0.035) per liter to Rp500 (US$0.05) whereas margins for subsidized fuel is only Rp180 (US$0.01) per liter. There are 2,738 stations all over Indonesia that sell non-subsidized fuels nationwide. In Greater Jakarta, 703 stations sell non-subsidized fuels out of a total of 720 stations. “Revenues will indeed decrease if we sell only non-subsidized fuels, but we hope station owners understand that doing this is a form of dedication to our nation,” Hanung added. Eri Purnomo Hadi, chairman of the Association of Fuel Station Owners (Hiswana Migas), said they have been discussing Pertamina’s suggestion. Eri said,”With higher margins, some owners are interested, but some others aren’t because the amount of capital spent by each station owner differs. But higher margins are definitely an interesting incentive because we need them to refinance our investments.” (April 28, 2012)