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Are the Pumps Primed?

Pertamina Official Says Lack of Legal Framework and Insufficient Pertamax Outlets Make April 1, 2012 Deadline for End to Subsidized Gas Problematic.

(1/13/2012) The Bali Post reports that the Bali office of the State-owned Oil Company PT Pertamina views plans by the government to control the distribution of subsidized fuel as, at this stage, remaining just an “idea” to the extent that the mode of introduction of the policy change in Bali has yet be finalized.

The area manager of Bali and NTB for Pertamina, Iin Febrian, told the Bali Post of Thursday, January 12, 2012, “indeed the implementation is planned for April 2012 for Java and Bali, but there’s no legal framework for its implementation, so it still remains very conceptual.”

Febrian said that Presidential Decree No. 55 of 2005 and Presidential Decree No. 9 of 2006, neither of which discusses subsidized fuel, govern fuel distribution. He contends that without a legal framework and another presidential decree it will be difficult for the government to move ahead with plans to limit the use of subsidized fuel.

He said Bali is attempting to prepare for any coming change in distribution policies by surveying the supply and distribution of fuel in Bali in order to smooth any massive transition from the use of premium fuel to Pertamax. “In addition, we are pushing ahead by making sure pertamax is available at all gas stations in Bali,” Febrian added.

From the 178 gas stations (SPBU) operating in Bali, only 83 (46%) are equipped to supply Pertamax non-subsided gas. Efforts are now intensively underway to bring this level to 80%.

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