Indonesian State Owned Enterprises BUMN add 11 Fuel Distribution Institutions in Papua



Minister of  Indonesian State Owned Enterprises (BUMN) Rini Soemarno confirmed to add 11 Petroleum Distributors Institution (LP) in Papua to suppress price disparity between regions. It is expected that with this LP, the selling price of BBM is equivalent to other regions in Indonesia.
As of November 2017, there are already nine LP in Papua and two LP in West Papua.
"We will continue to encourage the addition of Institution Distributors so that people in isolated areas of Papua will also get justice," said Minister Rini, as delivered in a release received by Antara in Wamena on Tuesday (21/11/2017).
Equalization of fuel prices to be conducted in 2018 at 11 points that include several districts in Papua province as in Bolakme, Abenaho, Keerom, and Tolikara District.
"Geographic and distribution conditions are challenging, and we are continuously working to address them together, and we are optimistic that fuel price equalization at targeted points can be realized through the support of local governments, the synergy of BUMN, communities and all stakeholders due to economic progress and equity requires the participation of all parties, "he said.
Before 2016, according to him, the selling price of fuel in Papua is in the range of Rp50 to Rp60 thousand per liter. However, with the BBM One Price policy, the fuel sales there are equivalent to Java and Bali, where the premium price is Rp6,450 and the Solar price is Rp5,150.
He said the policy of One Price Fuel in Papua and West Papua is an effort to accelerate economic development in society.
Based on Pertamina's record, the need for BBM in Papua currently reaches nearly 800 thousand Kiloliters (Kl) per year, with the allocation of 500 thousand KL for Papua and 300 thousand KL for West Papua.
The process of distributing fuel through various modes of transportation. From the sea, land, and special to some districts in the mountains such as Jayawijaya Regency, can only be through the air.

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