Who's Playing the Fuel Game?

IT is an open secret that there are often illegal practices in the procurement of oil from overseas. Brokers pretending to be traders look for profits by manipulating the price when there is a domestic oil deficit. These illegal practices by the oil mafia have continued for decades-and have cost the state hundreds of trillions of rupiah.

Due to the shortfall in domestic crude oil that can be refined in the country, state-owned oil and gas company Pertamina was tasked by the government to import fuel. The year-on-year increase in the demand for the oil means that imports are a necessity. In accordance with regulations, Pertamina must give priority to crude oil from domestic fields in its refineries before deciding to buy imported oil. There should be a clear calculation of the additional requirement before imports begin.

September 23, 2014