Pertamina Emphasizes Profitable Downstream Spirit
OREANDA-NEWS. June 27, 2014. PT Pertamina (Persero) aims to maintain its role and position as the backbone of the national energy security as well as strengthen the downstream businesses as the company’s profit center.
Pertamina Marketing and Trading Director Hanung Budya said that to achieve the 2025 aspiration, Pertamina used the theme of aggressive upstream and profitable downstream. Pertamina, he continued, was optimistic that it could maintain its market domination in the national downstream businesses.
“In addition to doing our public service obligation [PSO] for fuels and 3 kg Elpiji, Pertamina also aims to maintain its market domination in other downstream business sectors, such as special fuel retail and then other oil and gas derivative products like lubricant. Pertamina as a state-owned company, whose share is fully owned by the government, is committed to continue maintaining that domination,” Hanung said.
Hanung stated that Pertamina had done and would do various steps to increase profitability of its downstream businesses, among others, by optimizing the distribution chain and strengthening infrastructure for fuels, LPG, lubricants and petrochemical products. The optimization of the distribution chain would be conducted by increasing the amount of ships owned by Pertamina to improve efficiency in cargo deliveries as well as increase profit margin.
He explained that Pertamina in the coming five years would build new storages and fuel depots with a total capacity of 2 million KL and total investment of US\\$130 million.
For lubricant, Pertamina is also in the process of constructing lube oil blending plant (LOBP) and grease plant with a total investment of Rp 1.3 trillion. The lubricant plant will be the largest and the most high-tech facility in Southeast Asia.
Meanwhile, in addition to focusing on creating more profit margin, Hanung said, Pertamina will also continue its role as the backbone of the national energy security. According to him, 85% of energy or fuels in Indonesia were produced by Pertamina. Even for PSO fuels, Pertamina aimed to distribute 98% of the total quota provided by the government.
Currently, Pertamina’s operational stock stands at between 18 and 20 days. It means that around Rp 44 trillion worth of fuel parks in Pertamina’s facilities to maintain the stock security.
“Of course we support the government’s effort to build and develop strategic petroleum reserve and Pertamina with its all roles is ready to lead that initiative,” Hanung revealed.