Extension of Appointment of BBM (Fuel and Oil) Distributorship Up To 5 Years, Minister of EMR: This is for the Certainty of Investor Business Monday, January 8, 2018

  • 2018.01.09 Tuesday
  • 17:31

 

JAKARTA - Minister  of  Energy and Mineral Resources Ignasius Jonan explained the assignment of business entity for the Provision of Supply and Distribution of Specific Fuel Type (P3JBT) and the Provision of Distribution and Distribution of Special Fuel For Assignment (P3JBKP) for five years (2018- 2022), established to provide certainty of investment for business entities. That way, business entities are able to optimize their services to all parts of Indonesia.

This was stated by the Minister of Energy and Mineral Resources after witnessing the assignment of P3JBT assignment letter to PT Pertamina (Persero) and assignment of P3JBKP to PT Pertamina (Persero) and PT AKR Corporindo Tbk on Monday (8/1) in Jakarta. Certain types of Fuel (JBT) consists of kerosene and diesel fuel, while the type of Special Fuel Assignment (JBKP) includes a minimum premium RON 88 which is distributed outside Java, Madura and Bali (Jamali), the price is determined through Ministerial Decree (Kepmen) ESDM.

 

"I hope both Pertamina and AKR can do service to all corners of the archipelago with no hesitation, if the former assignment is every year, so people will be think want to invest or not," said Jonan.

 

The determination of the period of up to five years, continued Jonan, will provide space in planning the development of BBM (fuel and oil)  infrastructure (Distribution Facilities, Storage Facilities and Distributors), as well as an effort to raise the interest of Enterprises to follow the process of selecting business entities implementing P3JBT and P3JBKP. "If the investment to make gas station assignment only a year, well this is very hard, make gas stations will not return the money if only a year," he said.

 

Some time ago, Jonan acknowledged the appointment of a business entity every year is considered to make the performance less efficient because it requires sheets of decree.

 

The determination of the period of up to five years, continued Jonan, will provide space in planning the development of BBM infrastructure (Distribution Facilities, Storage Facilities and Distributors), as well as an effort to raise the interest of Enterprises to follow the process of selecting business entities implementing P3JBT and P3JBKP. "If the investment to make gas station assignment only a year, well this is very heavy, make gas stations will not return the money if only a year," he said.

 

Some time ago, Jonan acknowledged the appointment of a business entity every year is considered to make the performance less efficient because it requires sheets of decisions.

 

Determination of 5 year period for P3JBT and P3JBKP is the first time after in the previous year set once a year. Nevertheless, the Government opens opportunities for other business entities interested in submitting proposals by the end of the year.

 

"Later, if the end of 2018 there are other business entities that want to propose too, it please," said Head of BPH Migas(Downstream Regulatory Agency for Oil and Gas), Fansurullah Asa.

 

In the event of the addition of a certain Petroleum Distribution Agency and Special Assignment in the future, the Government will make changes to the assignment of the business entity as well as revise the volume of Certain Fuel and Special Assignment. "Every year just  volume revision, because it follows to the state budget," he added.

 

As it is known, based on the decree submitted today, in 2018, Pertamina gets a quota for the assignment of fuel type distribution of BBM (fuel and oil) is 15,980,000 Kilo Liter (KL), comprising kerosene of 610,000 KL and diesel oil (Gas Oil) of 15.37 million. Meanwhile, AKR Corporindo is 250,000 KL. In addition, the allocation of Premium distribution quota beyond Jamali (Java, Madura and Bali) Special Fuel Assignment (JBKP) for PT Pertamina (Persero) amounted to 7,500,000 KL. (NA)

 

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