Pertamina: No Garuda, No Losses

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  • TEMPO.CO, Jakarta - State-owned oil and gas company Pertamina, said that the company will not suffer a significant loss if Garuda Indonesia decided to purchase jet fuel (Avtur) from another company. "We have other businesses. The increase of the 12 kilogram [non-subsidized] LPG had also helped," said Vice President of Pertamina Aviation Wisnuntoro last week.

    He explained that Garuda is the number one consumer of Avtur from Pertamina. The sale of Avtur for Garuda constitutes 30 percent of the total national sale of the company's Avtur. "Garuda Indonesia is indeed the largest consumer among others," he said.

    Pertamina's Avtur sales reached up to four million kilo liters per year. The average price per liter is US$ 0.83. The avtur market, said Wisnuntoro, contributes to less than 10 percent of Pertamina’s total fuel sales.

    He explained that other than Garuda, there are still other airlines such as Lion Air, Sriwijaya Air, Air Asia and other foreign airline that purchase Avtur from Pertamina. Although Garuda Indonesia sits on the top of the list, Lion Air's consumption for domestic flights is higher than Garuda. "Every national airline is our customer, only 10 percent are foreign airlines," said Wisnuntoro.

    Suhartoko, Senior Vice President of Fuel Marketing and Distribution for Pertamina, said that Pertamina's Avtur prices is the highest among ASEAN countries because Pertamina is obliged to pay a fee of US$ 2.5 to US$3.4 per liter of Avtur sold inside airports managed by Angkasa Pura.

    The company is also obliged to pay a 0.03 percent fee for every liter of Avtur sold to the Downstream Oil and Gas Regulating Agency (BPH Migas). "We included the fees in the selling price because we are making no profits," he said.

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