Pertamina to Continue Supplying Diesel Fuel to PLN

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  • TEMPO/Budi Purwanto

    TEMPO/Budi Purwanto

    TEMPO.CO, Jakarta - State-owned oil company Pertamina has agreed to re-supply diesel fuel, locally known as solar, to state-owned electricity company PLN’s power plants, putting an end to the dispute between both companies. 

    Energy and Mineral Resources deputy minister Susilo Siswoutomo said both sides had agreed on a new price of solar they were quarrelling on. “It’s finished. Solar supply has resumed,” said Susilo on Wednesday. However, Susilo declined to mention the agreed price.

    PT Pertamina spokesman Ali Mundakir confirmed Susilo's statement, adding that PLN’s debt to Pertamina had also been resolved. “Every dispute has been settled,” he said.

    The feud between PLN and Pertamina had led to decreased solar supplies from the latter to some of PLN’s power plants. Pertamina decided to cut the solar supplies by half for PLN plants in Medan and Bali on August 1. On August 4, Pertamina also trimmed solar supplies to PLN plants in Samarinda, Pontianak and Bangka Belitung.

    Pertamina issued an ultimatum to cut its solar supplies to PLN on August 10 if both sides failed to see eye to eye on the new solar price. Pertamina said it wanted a price that was harmless to the company, given Pertamina's losses in the first half of the year that already stood at US$45 million.

    On Monday, Suryadi Mardjoeki, the oil and gas division chief at PLN, said PLN had agreed on a new solar price as requested by Pertamina, which was 109.5 percent from Mean of Plats Singapore (MOPS). However, the agreement is only valid from July to December 2014.

    “We have issued a letter that PLN agreed with the price proposed by Pertamina for the second semester and will be valid beginning July,” he said.