Pertamina Earns Rp1.2tn Efficiencies from Petral Dissolution

TEMPO.CO, Jakarta - State-owned energy company Pertamina saved US$91 million (Rp1.2 trillion) from the procurement of oil in the first half of 2016. The saved cost was obtained after Pertamina's procurement activities were taken over by the Integrated Supply Chain (ISC) division from the now disbanding Pertamina Energy Trading Limited (Petral).

In a press conference Thursday, August 25, Pertamina president director Dwi Soetjipto said that a decline in alpha components (distribution costs and margins) of the procurement process will happen place from time to time.

"It will hit a position where there is no more supply because our target is to build refineries," he said.

The saved money is more than the US$42-million Pertamina targeted for this year. Last year, Pertamina posted greater efficiency of US$208 million or around Rp2.7 trillion.

The efficiency was also obtained from the procurement of non-hydrocarbon products worth Rp2 trillion. The Oil Flow Management Repair Program (PTKAM) 0.2 saved Rp1.4 trillion, cost savings in the upstream sector garnered Rp7.8 trillion, and initiatives by other directorates pulled in US$1.28 trillion.

Pertamina also saved Rp2.4 trillion from the migration of oil fuel to gas consumption and from optimizing the use of ships and boat. "Next year, the efficiency figures can be higher," Arief said.

As for Petral, Pertamina's finance director Arief Budiman said the company has not completely disbanded yet because the liquidation process has not been completed. Pertamina still has to collect receivables from Petral's subsidiary in Singapore, Pertamina Energy Services (PES).

ROBBY IRFANY