Shell distributes fuel in Indonesia
Wed, 02/18/2004 3:45 PM The Jakarta Post, Jakarta
The Ministry of Energy and Mineral Resources issued licenses to Shell's PT Krida Petragraha, PT Sigma Rancang Perdana, PT Pandu Selaras, PT Elnusa Petrofin, PT Elnusa Harapan and PT Raven Sejahtera to distribute fuel in Indonesia.
"In principle, the directorate general of oil and gas (at the ministry) has given the licenses," Tubagus Haryono, The head of the downstream oil and gas supervisory body Migas.
Since the introduction of a new oil and gas law in 2001, the private sector is allowed to distribute fuel products in Indonesia, a move that ended the decades long monopoly of state oil and gas firm PT Pertamina.
Shell's PT Krida Petragraha and others were expected to start their operations after a government regulation on the oil and gas downstream sector was issued.
The regulation on the downstream sector was still in the process of being completed. Under the regulation, the new players would be allowed to import fuel or purchase it from Pertamina. But the regulation will require the companies to set up stockpile facilities here.
It is expected the entry of new players in the domestic fuel distribution business could begin earlier than the 2005 target.