Four companies in Indonesia, traditionally importing marine fuel oil (MFO), will now begin purchasing from state-owned oil company Pertamina, according to the Jakarta Post.
The companies include publicly listed nickel miner PT Vale Indonesia, local fuel trader PT AKR Corporindo, fuel producer PT Cosmic Petroleum Nusantara, and Batam-based fuel trader PT Yavindo Sumber Persada.
Deputy Energy and Mineral Resources Minister Arcandra Tahar confirmed on Wednesday that PT Vale will start buying MFO from Pertamina in April after its previous import contract expires in March. He also assured that Pertamina’s stock will be sufficient to meet the growing demand for MFO.
Tahar noted that purchasing marine fuel oil from Pertamina will provide the four companies with more affordable deals.
The total annual volume of bunker fuel purchased by the four firms is around 400,000 kilolitres (kl), worth approximately US $200 million.
Previously, these companies chose to import MFO due to difficulties with tenders and other processes. However, Tahar explained that these issues have now been addressed, allowing for a smoother procurement process.
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