Dahlan Allows Garuda to Buy Fuel from Other Sources
19 September 2014 15:24 WIB
TEMPO.CO, Jakarta - The Minister of State Owned Enterprise Dahlan Iskan has permitted state-owned airline Garuda Indonesia to purchase jet fuel (Avtur) from suppliers other than state-owned oil and gas company Pertamina. "If [Garuda Indonesia] feel the price of avtur fuel from Pertamina is expensive, they are welcome to purchase it from another source," said Dahlan yesterday.
Dahlan explained that the permission has been granted since two weeks ago during a meeting with the airline. The permit was issued to avoid monopoly practices. "I think the permit should not present any problems," he said.
Garuda Indonesia once complained about the expensive price of Avtur in Indonesia compared to Malaysia and Singapore. Avtur price soared as the Rupiah exchange rate weakens against US Dollar.
Arif Wibowo, Chairman of the National Aviation Company of Indonesia (INACA), said that one of the issues that hinder the performance of domestic airlines is Avtur price in Indonesia, which is the highest compared to other ASEAN countries. "Avtur contributes to 50 percent to the components of flight cost," he said.
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