Why Lease the Merak Terminal?

German company Oiltanking's plan to dispose of a fuel terminal in Merak, Banten, reached Ari Soemarno's ears at the end of 2013. Ari, chairman of the German-Indonesian Chamber of Commerce and Industry (Ekonid), received the information from Oiltanking Merak CEO Coenraad Hubner. Hubner wanted Ari's input on who his company might sell to.

At the meeting at Ekonid's office in Jakarta, Ari suggested that Oiltanking offer the terminal to state oil-and-gas company Pertamina. As Indonesia's largest distributor of subsidized fuel, Pertamina had an interest in having such a large storage terminal. Ari, a former chief of Pertamina, said he would not broker the deal or intervene in any way.

December 16, 2014