Never-Ending Crisis

Pertamina's current cash flow crisis can endanger the supply of fuel into the country. A long-term solution must be found.

April 19, 2005

IF the current problem faced by Pertamina is not quickly resolved, it will play havoc with the supply and delivery of fuel inside the country. This crisis is serious. This state-owned company is facing difficulties in obtaining letters of credit (L/Cs) to purchase fuel oil from overseas. A number of banks have outright refused to give Pertamina L/Cs because Pertamina has defaulted on loans amounting to Rp9 trillion. If L/Cs are hard to get, the

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