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Distribution of subsidized oil fuels.

Introduction

Many companies including multinational companies have shown interest in becoming a distributor of subsidized oil fuels (BBM BBM Brokeback Mountain (book/movie)
BBM Bureau of Broadcast Measurement
BBM Bachelor of Business Management
BBM Break Before Make
BBM Bread Board Model
BBM Bulk Business Mail
BBM Bahn Brenner Motorsport
). They proposed to take part in a tender planned by the government for the right to distribute subsidized oil fuels for 2010.

The Downstream Oil and Gas Regulator BPH BPH
abbr.
benign prostatic hyperplasia


BPH
Benign prostatic hypertrophy, a very common noncancerous cause of prostatic enlargement in older men.
 Migas, however, decided later not to hold tender. Instead the agency decided to name distributors through selection and direct appointment. Distribution of subsidized oil fuels will be made by regions by companies, which are declared winners in selection in certain regions.

Despite the change in the system of selection, a number of companies especially those related to oil and gas business were still interested in taking part and submitted their biddings.

Ten of 13 companies indicating interest in the tender and taking bidding documents proceeded by submitting their bidding documents. They were PT Shell Indonesia, PT Petronas Niaga Indonesia, PT Petrobas Indonesia, PT Aneka Kimia Raya (AKR AKR Auroral Kilometric Radiation
AKR Vehicle Cargo Ship
AKR Address Key Register
AKR Anime Kingdom Rebirth
) Corporindo Tbk, PT Medco Sarana Kalibaru, PT Pertamina, PT Total Oil Indonesia, PT Patra Niaga, PT Bumi Asri Prima Pratama and PT Petro Andalan Nusantara (PAN).

Meanwhile, with the conversion of kerosene kerosene or kerosine, colorless, thin mineral oil whose density is between 0.75 and 0.85 grams per cubic centimeter. A mixture of hydrocarbons, it is commonly obtained in the fractional distillation of petroleum as the portion boiling off  fuel into LPG LPG: see liquefied petroleum gas.

1. LPG - Linguaggio Procedure Grafiche (Italian for "Graphical Procedures Language"). dott. Gabriele Selmi. Roughly a cross between Fortran and APL, with graphical-oriented extensions and several peculiarities.
, system of kerosene distribution was changed as BP Migas adopted regulation on the closed system of distribution for subsidized kerosene. The adoption of the system triggered new problem at the level of operators in the regions.

The new system forced them to set up additional distribution bases. Addition of thousands of distribution bases for subsidized kerosene is to secure distribution and prevent leaks that consumers in the A village do not have to go to the B village to buy kerosene. Each agent will have data of consumers to be served and the consumers hold card showing they are entitled to subsidy.

Distribution area for subsidized oil fuels are also to be expanded as proposed in a hearing with the Energy Commission of the House of Representatives. BPH Migas proposed expansion of Commercial Distribution Areas from four regions into 14 regions in 2010.

With the expansion, greater opportunity is open for private companies to get involved in the distribution of subsidized oil fuels. However, latest development showed that BPH Migas delayed the plan as the government has yet to revise the Presidential regulation No 71/2005 on Provision and Distribution of Certain Fuels that the options once surfacing to narrow the Commercial Distribution Region (WDN WDN Women Donors Network
WDN Wewnatrzszkolnego Doskonalenia Nauczycieli
WDN Workplace Diversity Network
WDN Weatherford Daily News (Weatherford, OK)
WDN Wireless Developer Network
WDN World Data Network
WDN Worldwide Democracy Network
) to 14 could not possibly come to reality in 2010.

Subsidized oil fuel commodity

The government of Indonesia still provides subsidies on certain products of oil fuels (BBM) including Premium gasoline premium gasoline n (US) → (gasolina) súper m

premium gasoline premium (US) nSuper(benzin) nt

premium gasoline 
, kerosene for households and diesel oil for transport sector.

The amount of subsidy provided by the government on BBM is set at Rp556 per liter for 2010.

The types of BBM no longer subsidized include gasoline products other than premium such as Pertamax and Pertamax Plus and diesel oil and kerosene for industries

Types of BBM (oil fuels) commodities

Avgas (Aviation Gasoline)

Avgas is produced from petroleum fraction. It is designed for aviation fuel for aircraft with engines having internal combustion system, pistons with ignition system ignition system

In a gasoline engine, the means used for producing an electric spark to ignite the fuel-air mixture in the cylinders to produce the motive force. The ignition system consists of a storage battery recharged by a generator, an induction coil, a device to
. The performance of Avgas depends on its octane number octane number, figure of merit representing the resistance of gasoline to premature detonation when exposed to heat and pressure in the combustion chamber of an internal-combustion engine.  below 100 and above 100. The octane value of the type of Avgas circulating in Indonesia has a value of 100/130.

Avtur (Aviation Turbine)

Avtur is a special type of BBM produced from extraction of petroleum The extraction of petroleum is the process by which usable petroleum is extracted and removed from the earth. Locating the oil field
Nowadays, geologists use seismic surveys to search for geological structures that may form oil reservoirs.
. Avtur is designed as fuel for aircraft having turbine engines types ((external combustion). The performance or the quality of avtur is determined by the purity of the fuel, turbine combustion model and the durability of structure at low temperature.

Gasoline

Gasoline is the general name for many types of BBM for engines with ignition system. In Indonesia, there are several types of gasoline with different ignition quality. The quality levels of gasoline are based on the value of their RON (random Octane Number). Based on the RON gasoline consists of three types:

* RON 88 or widely known as Premium (the brand of Pertamina) is a distillated type of BBM in clear yellowish color. The yellow color comes from dyestuff. This fuel is used for motor vehicle with gasoline engine gasoline engine: see internal-combustion engine.
gasoline engine

Most widely used form of internal-combustion engine, found in most automobiles and many other vehicles.
 such as cars, motorcycles, outboard motor, etc.

* RON 92 or known as Pertamax (a trade mark of Pertamina) is used for engines needing high octane and unleaded gasoline, especially that using technology equivalent to electronic fuel injection and catalytic converters.

* (RON 95) or Pertamax Plus (also a brand of Pertamina) meets the performance standard of. International World Wide Fuel Charter (WWFC WWFC Wycombe Wanderers Football Club
WWFC Wolverhampton Wanderers Football Club
). It is used for motor vehicles with engines needing high octane fuel and environmentally friendly Environmentally friendly, also referred to as nature friendly, is a term used to refer to goods and services considered to inflict minimal harm on the environment.[1] . Pertamax Plus is very much recommended for vehicles having compression ratio compression ratio

Degree to which the fuel mixture in an internal-combustion engine is compressed before ignition. It is defined as the volume of the combustion chamber with the piston farthest out divided by the volume with the piston in the full-compression position (
 of > 10.5 and using the technology of Electronic Fuel Injection (EFI See UEFI.

EFI - Extensible Firmware Interface
), Variable Valve Timing Variable valve timing, or VVT, is a generic term for an automobile piston engine technology. VVT allows the lift or duration or timing (some or all) of the intake or exhaust valves (or both) to be changed while the engine is in operation.  Intelligent (VVTI), (VTI VTI Väg- och transportforskningsinstitutet
VTI Velocity-Time Integral
VTI Vietnam Telecom International
VTI Vocational Training Institute
VTI Virtual Tunnel Interface (Cisco)
VTI Vermeer Technologies Incorporated
), Turbochargers and catalytic converters.

Kerosene

Kerosene is part of crude oil having a boiling point boiling point, temperature at which a substance changes its state from liquid to gas. A stricter definition of boiling point is the temperature at which the liquid and vapor (gas) phases of a substance can exist in equilibrium.  of between 150[degrees]C and 300[degrees]C and is colorless. It is used for years as illumination fuel, cooking fuel, water heating Water heating is a thermodynamic process using an energy source to heat water above its initial temperature. Typical domestic uses of hot water are for cooking, cleaning, bathing, and space heating. In industry both hot water and water heated to steam have many uses. , etc. General it is for household uses, and small industries.

High Speed Diesel (HSD HSD Human Services Department
HSD High Speed Data
HSD Hillsboro School District (Hillsboro, OR)
HSD Hybrid Synergy Drive (Toyota/Lexus)
HSD High School Diploma
HSD Historical Society of Delaware
)

HSD is a type of diesel with cetane number cetane number
n.
The performance rating of a diesel fuel, corresponding to the percentage of cetane in a cetane-methylnaphthalene mixture with the same ignition performance. A higher cetane number indicates greater fuel efficiency.
 of 45. This BBM is used generally for transport fuel of vehicles with diesel engines. Usually it is used with injection system by pump and electronic injection; it is used for fuel for transport vehicles and industrial machines.

There are also modern diesel fuel which has met the waste gas emission standard Emission standards are requirements that set specific limits to the amount of pollutants that can be released into the environment. Many emission standards focus on regulating pollutants released by automobiles (motor cars) and other powered vehicles but they can also regulate  of EURO 2, having high performance with cetane number of 53 and more, having high quality with sulfuric content of below 300 ppm. This kind of BBM is recommended for diesel engines with the latest injection technology (Diesel Common Rail System), that fuel use is efficient but with high power.

Biodiesel

Biodiesel is an alternative to petroleum-based diesel fuel and is produced from renewable sources such as vegetable or animal oils. Chemically, biodiesel is fuel from a mixture of mono-alkyl ester long chain fatty acid fatty acid, any of the organic carboxylic acids present in fats and oils as esters of glycerol. Molecular weights of fatty acids vary over a wide range. The carbon skeleton of any fatty acid is unbranched. Some fatty acids are saturated, i.e. .

The type of biodiesel sold in the market at present is a mixture of petroleum based diesel making up 95% with CPO (Chief Privacy Officer) An individual who manages the privacy issues within an organization. Arising out of the privacy regulations in finance and health care in the late 1990s, the CPO position eventually crossed over to all industries. , which has been processed into Fatty Acid Methyl Ester A fatty acid methyl ester (FAME) can be created by an alkali catalyzed reaction between fats or fatty acids and methanol. The molecules in biodiesel are primarily FAMEs, usually obtained from vegetable oils by transesterification.  (FAME), making up 5%.

Diesel Oil (MDF (1) (Main Distribution Frame) A wiring rack that connects outside lines with internal lines. It is used to connect public or private lines coming into the building to internal networks. )

Diesel oil is produced through oil distillation in black color, liquid in low temperature. Normally it has low sulfur content and could be used by Medium Speed Diesel Engine in industrial sector. Therefore, diesel oil is said Industrial Diesel Oil (IDO Ido (ē`dō), short name of Esperandido, an artificial language that is a simplified version of Esperanto. See international language. ) or Marine Diesel Fuel (MDF).

Fuel Oil (MFO MFO Mixed function oxidase, see there )

Fuel oil is not the product of distillation but it is a residue in black color. This type of oil has higher concentration compared with diesel oil. This cheap fuel is generally used for direct burning. Fuel oil is not far different from Marine Fuel Oil (MFO).

Volume of subsidized BBM (oil fuels) distributed

The volume of subsidized oil fuels distributed in 2009 rose 3% to 36.8 million kiloliters from 2008. The increase was contributed more by Premium gasoline which grew in volume from 16.98 million kiloliters in 2008 to 19.4 million kiloliters in 2009. Distribution of. Kerosene fell on the growing use of LPG substitute.

The government through BPH Migas proposed BBM subsidy to the House of Representatives for 2010 BBM totaling 36.50 million kiloliters, consisting of 21.54 million kiloliters of Premium, 3.80 million kiloliters of kerosene and 11.25 million kiloliters of diesel oil.

The program of converting kerosene with LPG continues progressing that the volume of subsidized kerosene proposed by the government in 2010 is reduced considerably by 34% from the subsidy for 2009

Value of BBM (oil fuels) subsidy

Subsidy on oil fuels (BBM) in 2007 shot up to Rp91 trillion from Rp55.6 trillion previously set for the revised 2007 state budget. The surge came with the soaring prices of crude oil toward the end of that year. In 2008, the subsidy on BBM continued to swell to follow the soaring prices of crude oil reaching US$ 120 per barrel, that BBM subsidy was set at Rp101.4 trillion.

The decline n the price of crude oil in the world market toward the end of 2008 and falling demand for kerosene on the use of LPG as substitute in the country resulted in a decline in BBM subsidy to Rp100.6 trillion in 2009.

Developments of BBM (oil fuels) prices

The prices of subsidized oil fuels are set by the government as apart from the fact it pays the subsidy, oil fuels concerns the interest of the people in general.

Among the subsidized types of BBM are kerosene for household and small industries, gasoline of RON 88, and diesel oil for use by small industries, transport and public services Public services is a term usually used to mean services provided by government to its citizens, either directly (through the public sector) or by financing private provision of services. .

The retail prices of subsidized oil fuels are set based on the average price a month ahead of the reference price of Mid Oil Platts of Singapore (MOPS) plus distribution cost and 13.5 % margin.

The retail and reference prices are set on a Presidential regulation. The prices of subsidized oil fuels were last determined with Presidential regulation. Meanwhile, the prices of other types of BBM are left to be dictated by the market.

The retail price of Premium is set at Rp4,500 per liter in 2009, down from Rp5,000 in 2008--or the same as in 2007. The price of kerosene is stable at Rp2,500 per liter since 1008. The price of automotive diesel oil as was the price pf Premium rose to Rp4,800 before falling to Rp4,500 by August 2009..

Distribution Subsidized oil fuels

Distribution system

Pertamina is the main distributor of subsidized oil fuels in Indonesia and controls distribution facilities for retail sales of subsidized BBM.

Pertamina has a number of fuel filling station facilities such as Industrial fuel filling station (SPBI), Armed forces fuel filling station (SPBA SPBA Sandy Plains Baseball Association (Marietta, GA)
SPBA Swiss Private Bankers Association
SPBA Society of Professional Benefit Administrators
SPBA Singapore Promising Brand Award
SPBA Scottish Pipe Band Association
) and General fuel filling station (SPBU), and has several categories of agent and other facilities to support distribution of subsidized oil fuels. The facilities include :

1. SPBI (Fuel filling stations for industry). SPBIs are owned and operated by industrial companies built with specifications set by Pertamina. Each SPBI has BBM allocation under contract with Pertamina. Under the new Law on oil and gas SPBIs are allowed to receive BBM from other suppliers.

2. SPBA (Fuel filling stations for the armed forces). SPBAs are owned and operated by the armed forces including the army, the navy, the air force and the police built with specifications set by Pertamina. The stations serve only motor vehicles of the armed force without payments.

3. PSPD PSPD Palm Springs Police Department
PSPD People's Solidarity for Participatory Democracy
PSPD Professional Services Procurement Directorate
PSPD Powder Springs Police Department (Georgia)
PSPD PSP Developer
 (Premium Solar Packed Dealer) is fuel filling agent named by Pertamina like SPBU but without fuel filling units. PSPDs are owned and operated by private company serving vehicles on land or in waters that could not be reached by SPBU. PSPDs are given the same prices as for SPBU. Under the new law on oil and gas PSPDs are allowed to serve as agent and fuel suppliers for companies other than Pertamina.

4. Premium Diesel Oil Agents (APMS APMS Alternative Provider Medical Services (UK)
APMS Aviation Performance Measuring System
APMS Automated Program Management Information System
APMS Advanced Plant Management System
APMS Automated Performance Measurement System
) are named by Pertamina as a private agent to serve motor vehicles on land and in waters that could not be reached by tanker trucks as the location is across river or sea. The fuel is transported from depot of Pertamina by the agent on its own cost. The agent is given a price he same as given to SPBU. Under the new law on oil and gas, an APMS is allowed to serve as agent for BBM producers other than Pertamina.

5. Rural Cooperative Units (KUD) are named by Pertamina as the distributors based on a joint decision No. 008/Kpts/DM.Migas/1984 and No. 75/Buk/IV/1984 in 1984 of the Oil and Gas Director General and Cooperatives Development Director General. They would become distributors for oil companies other than Pertamina.

6. Consumer Pool is a privately owned fuel distribution facility established by a group of fuel consumers to supply Premium gasoline especially for their own consumption. This facility was set up for areas that could not be reached by ordinary distributors.

7. Aircraft Filling Depot (DPPU DPPU Dyadic Protocol Processor Unit
DPPU Dual Protocol Processor Unit
) is owned and operated by Pertamina to serve aircraft using re-fueler or dispenser directly from tanker truck to aircraft.

8. AIRCRAFT FUEL DEPOT is a fuel depot owned and operated by Pertamina to serve aircraft that could not be reached by DPPU, using gasoline trucks and other containers. The airline is responsible for carrying fuel it needs from Pertamina's fuel depot.

9. KEROSENE AGENT is an agent distributing kerosene from depots of Pertamina. Kerosene is distributed through retail shops directly to the consumers.

10. SPBB (Fuel filling station for Bunker). This facility constitutes a bunker of Pertamina equipped with pipe and barges or in emergency with tanker trucks to transport fuel from Pertamina's terminals directly to bunker and then to a tanker ship.

Premium and diesel oil have almost the same distribution system. The distribution system is different for kerosene especially with the conversion into LPG.

Closed distribution system for kerosene to be stopped

The closed distribution system using control card for kerosene launched for the first time in April 2008, will likely be no longer used as the conversion from kerosene to LPG has been well in progress. Most kerosene used have chosen LPG.

According to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3.
 Minister of Energy and Mineral Resources (ESDM ESDM Electronic Software Delivery and Management ) Purnomo Yusgiantoro, the program has to be carried out in flexible way by taking into consideration the condition in the field.

The Downstream Oil and Gas Regulator (BPH Migas) has adopted the closed distribution system for the distribution of subsidized kerosene. For that purpose census of the users of subsidized kerosene has been carried out in 63 regencies.

The application of the closed system of distribution is to better guarantee that the distribution of subsidized kerosene would be properly done.

Closed system of distribution is a distribution system for subsidized kerosene using control card, which shows the name, address and monthly kerosene share of the holder. PT Pertamina as the Public Service Obligation (PSO PSO - Oracle Parallel Server ) based on the control card, PT Pertamina as the Public Service Obligation (PSO) agent will serve the purchase of subsidized kerosene. Pertamina, therefore will sell kerosene just to meet the consumers' need not their request.

Census was held in 2006 on 10 regencies and in 2007 to cover 63 regencies altogether including in Sumatra, Java, Kalimantan, Sulawesi, East Nusatenggara (NTT NTT Nippon Telegraph and Telephone Corporation
NTT New Technology Telescope
NTT National Technology Transfer, Inc
NTT Name That Tune (TV game show)
NTT National Tree Trust
NTT Number Theoretic Transform
). In 2008 census continued in other regions. The censuses also show whether the kerosene consumption of 3.75 liter per person a month as has been used as a reference, is correct.

Open distribution system which has been used so far for subsidized kerosene is more liable to deviation misuse. Frequent shortage in supply with queuing buyers indicates deviations.

BPH Migas has used the control card program in the distribution of subsidized kerosene in 2009 in cooperation with PT Pertamina (Persero). In order to smoothen the implementation of the program, BPH Migas involves regional administrations.

During 2008, BPH Migas took record of the users of kerosene in 14 regencies /cities outside Java and socialized the use of the card. The regencies includes Aceh Besar, Simalungun, Tanjung Pinang Tanjung Pinang or Tanjungpinang is the capital and largest town of the Indonesian province of Riau Islands. The city with 150,000 residents ) and is a trading port between islands in the Riau archipelago. , Solok, Bangka, Jambi, Tulang Bawang, Pontianak, Kepahiang, Banjarbaru, Maros, Kota Bima, Manggarai Barat and Muna.

Regencies/cities which already implemented the program earlier include Magelang, Solo, Kudus, Pemalang, Purwakarta, Subang, Karawang, Lamongan, Mojokerto, Kediri, Madiun, Yogyakarta, Bontang, Banjarbaru, Medan, Makassar, Maros, Manado and Gorontalo.

In the same year, BPH Migas named agencies in Kota Purwakata, Subang, Karawang, Bogor, Surakarta, and Sragen, and in the Lamongan district and a number of regencies in East Java East Java (Indonesian: Jawa Timur) is a province of Indonesia. It is located on the eastern part of the island of Java and also includes neighboring Madura and Bawean islands. .

Division of Commercial Distribution Areas (WDN)

Downstream Oil and Gas Regulatory Agency regulatory agency

Independent government commission charged by the legislature with setting and enforcing standards for specific industries in the private sector. The concept was invented by the U.S.
 (BPH Migas) finally decided to continue using four commercial distribution areas (WDN) in selecting companies distributing and providing subsidized BBM for 2010.

A committee member of the BPH Migas Jugi Prajogio said the decision to continue using four WDNs was made as the government had not revised the Presidential regulation No. 71/2005 on Provision and Distribution of certain type of fuels. Therefore, an option to split the WDN into 14 smaller areas for 2010 could not be implemented.

Head of the BPH Migas Tubagus Haryono said BPH Migas will continue to seek the use of 14 regional distribution bases for BBM as earlier proposed.

The 14 regional bases include regional 1 in Northern coast of western part of Sumatra, regional 2 in Northern coast of eastern part of Sumatra, regional 3 in Southern part of Sumatra West Kalimantan West Kalimantan (Indonesian: Kalimantan Barat often abbreviated to Kalbar) is a province of Indonesia. It is one of four Indonesian provinces in Kalimantan, the Indonesian part of the island of Borneo. Its capital city Pontianak is located right on the Equator line. , regional 4 in Banten, DKI DKI Dynamic Keyword Insertion
DKI Disaster Kleenup International (Wood Dale, IL)
DKI diffusional kurtosis imaging
DKI Don't Knock It
DKI Device Kernel Interface
 Jakarta, Bodebek, regional 5 in West Java and Bodebek, regional 6 in Central Java Central Java (Indonesian: Provinsi Jawa Tengah) is a province of Indonesia. The administrative capital is Semarang. It is one of the six provinces of the island of Java. Central Java is both a political entity and a cultural concept.  and Yogyakarta, regional 7 in East Java, regional 8 in Central Kalimantan Central Kalimantan (Indonesian: Kalimantan Tengah often abbreviated to Kalteng) is a province of Indonesia, one of four in Kalimantan - the Indonesian part of the island of Borneo. Its provincial capital is Palangkaraya.

The province has a population of 1.
 and South Kalimantan South Kalimantan (Indonesian: Kalimantan Selatan often abbreviated to Kalsel) is a province of Indonesia. It is one of four Indonesian provinces in Kalimantan - the Indonesian part of the island of Borneo. The provincial capital is Banjarmasin. , regional 9 in East Kalimantan East Kalimantan (Indonesian: Kalimantan Timur abbrv. Kaltim) is Indonesian province on the east of Borneo island. The resource-rich province has two major cities, Samarinda (the capital and a center for timber product) and Balikpapan (a petroleum center with oil , regional 10 in Northern part of Sulawesi, regional 11 in Southern part of Sulawesi, regional 12 in Bali, West and East Nusatenggara, regional 13 in Maluku, Northern part of Papua, and regional 14 in Maluku and Southern part of Papua.

Allocation of subsidized oil fuels

Subsidized oil fuels to be distributed in 2010 will total 36.5 million KL. or down 6.26% from previously set in the revised 2009 state budget of 38.9 million KL. The subsidized oil fuels will be distributed among the provinces based on their respective quota set by the BPH Migas.

WDN 1 has at least 10 provinces to have distribution of subsidized oil fuels including Aceh to have 736,246 KL; North Sumatra North Sumatra (Indonesian: Sumatera Utara) is a province of Indonesia. Its capital is Medan. Geography and population
The province of North Sumatra stretches across the island of Sumatra between the Indian Ocean and the Strait Malacca.
 to have 2.2 million KL, West Sumatra West Sumatra (Indonesian: Sumatera Barat, abbreviated to Sumbar) is a province of Indonesia. It lies on the west coast of the island Sumatra, and borders the provinces of North Sumatra (Sumatera Utara) to the north, Riau and Jambi to the east, and  1.07 million KL, Riau Islands Riau Islands (Indonesian: Kepulauan Riau (Kepri or Riau Kepulauan) is a province of Indonesia, consisting of Riau Archipelago, Natuna Islands, Anambas, and Lingga Islands.  607,287 KL. mainland Riau 1.3 million KL, Jambi 689,071 KL, South Sumatra South Sumatra or Sumatera Selatan is a province of Indonesia. It is on the island of Sumatra, and borders the provinces of Lampung to the south, Bengkulu to the west, and Jambi to the north.  1.1 million KL, Bengkulu 290,126 KL, Lampung 1.02 million KL and Bangka Belitung 439,235 KL.

In WDN 2. there are 7 provinces including Jakarta to have a share of 2.9 million KL, West Java 5.01 million KL, Banten 1.5 million KL, Central Java 3.4 million KL, DIY DIY
abbr.
do-it-yourself


DIY or d.i.y. Brit, Austral & NZ do-it-yourself
DIY
abbr DIY
do it yourself a DIY shop/job.
 501,698 KL, East Java 4.4 million KL, and Bali 871,644 KL.

In WDN 3, there are 14 provinces including East Kalimantan to have a share of 853,078 KL, South Kalimantan 929,558 KL, Central Kalimantan 590,409 KL, West Kalimantan 911,829 KL, North Sulawesi 561,535 KL, Gorontalo 159,024 KL, Central Sulawesi 443,917 KL, South Sulawesi 1,09 million KL, Southeast Sulawesi 345,236 KL, West Sulawesi 129,996 KL, Papua 338,29 KL, West Irian Jaya West Irian Jaya: see Papua, Indonesia.  178,511 KL, Maluku 288,896 KL and North Maluku 165,925 KL.

WDN 4 has 2 provinces NTB NTB Non-Tariff Barriers
NTB National Tire and Battery
NTB Norsk Telegrambyrå
NTB NASA Tech Briefs (NASA magazine/newsletter)
NTB No Turning Back (band)
NTB Nuclear Test Ban
NTB Not Too Bad
 655,698 KL and NTT 438,844 KL,

BBM (Oil Fuels)Distribution Facilities

Pertamina still maintains domination of oil fuels (BBM) market in the country controlling distribution facilities for retail sales. Most units of SPBU (Fuel filling station for the public) in Indonesia are operated in cooperation with Pertamina. Units of SPBU not controlled by Pertamina totaled less than 50 units in 2007 located mainly in Jakarta and nearby areas.

There are three system of SPBU management in the country--COCO (company own company operate), CODO CODO Change of Degree Objective (education)
CODO Company Owned Dealer Operated (petroleum industry) 
 (company own dealer operate), and DODO Dodo, in the Bible
Dodo (dō`dō), in the Bible, father of the mighty man Eleazar. An alternate form is Dodai.
dodo, extinct bird
dodo, 
 (dealer owned dealer operate).

** Storage Facilities

BBM storage facilities include depots, tanks and floating storage.

1. Installations/Transit Terminals/Main Depots. The facilities function to receive and store BBM from oil refineries to be transported and distributed to other depots or storage tanks or directly to the end of users. Pertamina operates 14 units of fuel installation or terminal transits, 107 depots in Indonesia including 84 sea-fed depots and 23 inland depots, 39 standard DPPU (Airport Refueling Depots) in addition to 15 pioneer DPPUs.

2. Storage Tanks. This facility is to hold BBM before being transported to consumers or units of SPBU.

3. Floating Storage. This facility is used for imported crude oil or oil products. Units of floating storage include :

a. Teluk Semangka receiving crude oil from Middle East to feed the Cilacap oil refiner.

b. Teluk Jakarta, which functions as a diesel oil supply point for Jakarta, Semarang and Surabaya and supply point of imported crude oil.

c. Pulau Sambu. This facility functions to store low sulfur waxy waxy (wak´se)
1. composed of or covered by wax.

2. resembling wax, especially denoting some combination of pliability, paleness, and smoothness and luster.
 residue (LSWR LSWR London & South Western Railway ) from the Balikpapan refinery

d. Semi Floating Storage. This is a small floating storage facility and semi permanent in Bali, Nusa Tenggara, North Sulawesi and Maluku.

Other than Pertamina, currently there are a number of other players in the BBM storage business such as PT. Petro Andalan Nusantara, PT. Redeco Petrolin Utama, PT. AKR Corporindo, PT. Patra Niaga, PT. Source Alam Utama West Kalimantan, and PT. Dover Chemical.

** BBM (Oil Fuels) Transport Facilities

The transport facilities used for BBM from oil refineries are:

1. Tankers : ships operated by Pertamina. The tankers are owned or chartered by Pertamina.

2. Tanker trucks, used for the transport of BBM from one depot to the other depots of Pertamina and then to units of SPBU, SPBI, SPBA, APMS, DPPU, kerosene agents, KUDs, bunkers and other distribution facilities serving the consumers directly. The tanker trucks are owned either by Pertamina or by the operators of SPBU, SPBI, SPBA, etc. Transport of aviation fuels is generally handled by three parties excepting for DPPU, which uses the facility of Pertamina.

3. BARGES are used in areas where river transport is more commonly used. Barges are generally operated and operated by private companies. Currently there are 12 units of barge with a total capacity of 35,508 DWT DWT
abbr.
1. deadweight tonnage

2. deadweight tons
.

4. RAIL TANK WAGONs are transport facility used in Java, North Sumatra and South Sumatra where there are railway transport facilities. The facility is owned and operated by PT Kereta Api Indonesia (PT KAI) on contract with Pertamina, which is responsible for the distribution of fuels. There are 991 units of tanker wagons operated by PT KAI, 694 units of which are owned by PT KAI, and the rest or 297 units are owned by Pertamina.

5. Fuel Transports System with pipes. In some areas BBM is distributed through pipelines. Currently this system is used in some areas such as :

a. From the Cilacap refinery to Tasikmalaya, Ujung Berung and to depots in Padalarang in West Java.

b. From the Cilacap refinery to Maos and to depot of Rewulu in Central Java.

c. From the Pangkalan Brandan refinery to Pangkalan Brandan in North Sumatra.

d. From the Balikpapan refinery to depots in Balikpapan in East Kalimantan.

e. From the Dumai refinery to depot in Dumai in Riau.

Other than Pertamina currently there are 23 other players operating in BBM transport business in Indonesia.

Pertamina remains the main player in BBM (oil fuels) distribution

After four years of seeking to liberalize lib·er·al·ize  
v. lib·er·al·ized, lib·er·al·iz·ing, lib·er·al·iz·es

v.tr.
To make liberal or more liberal: "Our standards of private conduct have been greatly liberalized . . .
 the business in the distribution of subsidized oil fuels, the government of Indonesia chose to adopt the oligopoly oligopoly: see monopoly.
oligopoly

Market situation in which producers are so few that the actions of each of them have an impact on price and on competitors. Each producer must consider the effect of a price change on the others.
 market structure as it does not want to go too far in liberalizing the system that could hurt PT Pertamina as well as the interest of people in general.

Based on the Oil and Gas Law, allowing any company to carry out the public service obligation (PSO) in the distribution of subsidized oil fuels, should come into effect 23 November 2005, to coincide with the termination of the PSO of PT Pertamina.

The government is not yet ready to fully implement the law especially concerning the technical regulations, therefore, the PSO was adopted only on 1 January, 2006. After the PSO with a new system was adopted, there was no company other than Pertamina ready with the required infrastructure. Pertamina, therefore, remains the only one assuming the BBM PSO until 2009.

The Downstream Oil and Gas Regulatory Agency (BPH Migas) said it is possible for other companies to take limited part in the distribution of subsidized oil fuels starting 2010 but the priority is still for Pertamina.

In addition any companies involved in the distribution of subsidized oil fuels must be in cooperation with Pertamina to guarantee that the state company will maintain the position as the main player.

The government does not want the market of subsidized oil fuels is liberalized into a competitive market. Under the oligopoly market structure, Pertamina is expected to control up to 80% of the market.

* Marketing Units (UPMS UPMS University of Pennsylvania Medical School ) of Pertamina

Competition in SPBU (gas stations) business sharper

Pertamina is seeking to continue to improve its services to meet sharper competition in the business of operating public fuel filling stations (SPBU). Currently there are 4,300 units of SPBU, but only 687 units already secure the Pasti Pas (precision guaranteed) certificate

Pertamina has set a target that 1,000 units of its SPBU will secure the certificate by the end of 2009 and in 2010, its entire SPBU units are to have the certificate.

Later Pertamina will put in ranks all SPBU having the certificate based on their performance, all entitled to incentive depending on their ranks, which include categories of Silver and Gold.. The margin for those not yet up to standard is Rp180 per liter and ones in Silver category to have an incentive of Rp200 per liter. If they could maintain the rank for three months the margin will be increased by Rp5--Rp30 per liter and if they could maintain the good service for a year they would win the rank of Gold category and if it goes for another year the rank will be promoted to Diamond

PT Shell Indonesia has also continued to open new SPBU. Its Vice President Wally Saleh said the increase in number is to meet growing demand for the service in the future. Shell plans to open one or two more units in Jakarta. Currently Shell has 20 units of SPBU in Jakarta.

Petronas, through PT Petronas Niaga Indonesia plans to build more than 400 units of SPBU until 2011. The new units will be built in Java, Sumatra and Kalimantan. In the period of 2005-2006, Petronas built 5 units of SPBU, and in 2006-2007, it had 30 more units unit SPBU. In 2007-2008 it build again 65 units and in 2008-2009, there were 10 more units. In 2009-2010 it plans to have 147 new units of SPBU and 200 units in 2010-2011.

Meanwhile, PT Total Oil Indonesie also has target to build five units of SPBU by the end of 2009. The five units will be opened in Jakarta, Depok, Bogor, Tangerang, and Bekasi. A company official Rulianti Syahrul said currently Total has two units of SPBU in Jakarta. PT Total Indonesia is the owner but the operator is its partner.

The SPBU of Total sell only non-subsidized BBM. The types of its BBM are one with octane 92 the class of Pertamax (Performance 92), gasoline with octane 95, the class of PertamaxPlus (Performance 95) and diesel oil the class of Pertamina Dex DEX - A cross between Modula-2 and C by W. van Oortmerssen.

Amiga version 1.2.
 (Performance Diesel).

Performance 92 is sold at a price of Rp 5,900 per liter, Performance 95 at Rp 6,500, and Performance Diesel Rp 6,900. The prices are more or less the same as those put up by Pertamina and Shell.

Prospects of business in BBM (oil fuels) distribution

The prospects of business in the distribution of subsidized oil fuels are encouraging with fast growing demand. The oligopoly systems opens greater opportunity for non Pertamina companies to get a share in the profitable business. Non Pertamina distributors are allowed to operate only in certain regions, but they are required to have the capacity to handle distribution in at least two WDNs.

With limited distribution facilities, however, it would be difficult for other companies to challenge the domination by Pertamina in the near future. Pertamina already has all the facilities needed almost in all parts of the country.

The condition may soon change with plan to split the 4 WDNs into 14 allowing more non Pertamina companies to operate in the business with smaller coverage of distribution system compared with the networks required in only four WDNs.

Shell and Petronas are potential competitors for Pertamina as they have continued to expand their networks of SPBU in Indonesia.

Conclusion

The government of Indonesia has scrapped the monopoly system in the distribution of subsidized oil fuels in a bid to create a healthy market competition, which is expected to lead to greater efficiency n the business sector.

The government, however, is set to keep Pertamina as he dominating player to better guarantee supply of the vital requirement of the people. Control by the government is still needed to secure supply in all regions.

Although the government has not fully liberalize the market of subsidized oil fuels, the private companies still see opportunity in the business especially in storage, transport and retail sales.

Strong interest has been shown by foreign investors such as Shell, Petronas and Total Indonesie, which have invested much especially in the development of SPBU units and distribution facilities.
Table--1
Volume of subsidized BBM (oil fuels), 2008-2010

Types of BBM              2008                      2009

Premium         16.98 million kiloliters   19.4 million kiloliters
Kerosene        7.56 million kiloliters     5.8 million kiloliters
Diesel oil        11 million kiloliters    11.6 million kiloliters
Total           35.54 million kiloliters   36.8 million kiloliters

Types of BBM             2010 *

Premium         21.45 million kiloliters
Kerosene         3.80 million kiloliters
Diesel oil      11.25 million kiloliters
Total           36.50 million kiloliters

Source : BPH Migas

*) Proposed by the government

Table--2
Cost of BBM (oil fuels) subsidy, 2007-2009

Subsidy               2007    2008    2009

Value (Rp trillion)     91   101,4   100,6

Source : BPH Migas, Pertamina

Table--3
BBM (oil fuels) Price Developments, 2009

                                              Diesel/Bio
Date                  Premium     Kerosene        diesel      Diesel

15 Feb   Retail         4,500        2,500         4,500          --
         (Rp/Lt)

REGION. 1

         Customer   4,913,500    5,681,800     4,421,200   4,292,000
         (Rp/KL)

         Bunker        425.36       491.90        382.76      371.58
         (US$/KL)

REGION. 2

         Customer   5,011,700    5,802,000     4,705,500   4,603,900
         (Rp/KL)

         Bunker        433.87       502.31        407.72      398.59
         (US$/KL)

REGION. 3

         Customer   5,129,600    5,947,200     4,825,000   4,716,700
         (Rp/KL)

15 Jan   Bunker        444.07       514.88        417.72      408.35
Feb      (US$/KL)

REGION. 4

         Customer   4,913,500    5,681,800     4,383,000   4,292,000
         (Rp/KL)

         Bunker       425.,36      491.,90       379.,46     371.,98
         (US$/KL)

                      Diesel                  Perta-
Date                     V10    Fuel oil    mina Dex    Description

15 Feb   Retail           --          --          --    Subsidized
         (Rp/Lt)                                        price Reg.
                                                         of EMDN.
                                                         minister
                                                         No, 16 in
                                                           2008)

REGION. 1

         Customer   4,045,000   3,578,400   4,804,000     Selling
         (Rp/KL)                                           price
                                                         Economic
                                                        value (Non
                                                         Subsidy)

         Bunker        350.20      309.83      415.95     Selling
         (US$/KL)                                          price
                                                         Economic
                                                        value (Non
                                                         Subsidy)

REGION. 2

         Customer         --    3,727,500         --      Selling
         (Rp/KL)                                           price
                                                         Economic
                                                        value (Non
                                                         Subsidy)

         Bunker           --       322.74         --      Selling
         (US$/KL)                                          price
                                                         Economic
                                                        value (Non
                                                         Subsidy)

REGION. 3

         Customer         --    3,802,000         --      Selling
         (Rp/KL)                                           price
                                                         Economic
                                                        value (Non
                                                         Subsidy)

15 Jan   Bunker           --       329.19         --      Selling
Feb      (US$/KL)                                          price
                                                         Economic
                                                        value (Non
                                                         Subsidy)

REGION. 4

         Customer   4,045,000   3,578,400   4,804,000     Selling
         (Rp/KL)                                           price
                                                         Economic
                                                        value (Non
                                                         Subsidy)

         Bunker      350.,20     309.,83
         (US$/KL)

Table - 4

Commercial distribution areas for BBM (oil fuels)

WDN I                      WDN II         WDN III              WDN IV

Nanggroe Aceh Darussalam   Banten         West Kalimantan
North Sumatra              DKI Jakarta    South Kalimantan     NTB
West Sumatra               West Java      East Kalimantan      NTT
Riau                       Central Java   Central Kalimantan
Riau Islands               Yogyakarta     West Sulawesi
Jambi                      East Java      South Sulawesi
Bengkulu                   Bali           Central Sulawesi
South Sumatra                             Southeast Sulawesi
Bangka Belitung                           North Sulawesi
Lampung                                   Gorontalo
                                          Maluku
                                          North Maluku
                                          West Irian Jaya
                                          Papua

Source: BPH Migas

Table - 5
Plan 14 of Regional Bases of BBM (oil fuels) Distribution

Regional
basis      Regions

1          Northern coast of western part of Sumatra
2          Northern coast of eastern part of Sumatra
3          Southern Sumatra, West Kalimantan
4          Banten, DKI Jakarta, Bogor, Depok, Bekasi
5          West Java and Bogor, Depok, Bekasi
6          Central Java and DI Yogyakarta
7          East Java
8          Central Kalimantan and South Kalimantan
9          East Kalimantan
10         Northern part of Sulawesi
11         Southern part of Sulawesi
12         Bali, West and East Nusatenggara
13         Maluku and northern part of Papua
14         Maluku and southern part of Papua

Source: BPH Migas

Table - 6
Allocation of subsidized oil fuels, 2009 - 2010

WDN I

No.   Provinces                    Allocation of quota

                                    2009          2010 *

1     Aceh                    761.564 KL       736.246 KL
2     North Sumatra         2,630,825 KL     2.000.000 KL
3     West Sumatra            906,400 KL     1.070.000 KL
4     Riau Islands            516,376 KL       607.287 KL
5     Riau mainland         1,377,055 KL     1.300.000 KL
6     Jambi                   594,085 KL       689.071 KL
7     Bengkulu                242,235 KL       290.126 KL
8     South Sumatra         1,106,520 KL     1.100.000 KL
9     Lampung               1,136,648 KL     1.020.000 KL
10    Bangka Belitung         390,686 KL       439.235 KL

WDN II

No.   Provinces                        Volume

                                    2009           2010 *

1     DKI Jakarta           2,917,190 KL     2.900.000 KL
2     West Java             5,099,746 KL     5.010.000 KL
3     Banten               1,649, 662 KL     1.500.000 KL
4     Central Java          3,961,131 KL     3.400.000 KL
5     Jogjakarta              483,641 KL       501.698 KL
6     East Java              5,300,28 KL     4.400.000 KL
7     Bali                    863,746 KL       871.644 KL

WDN III

No.   Provinces                          Volume

                                    2009          2010 *

1     East Kalimantan         895,368 KL      853.078 KL
2     South Kalimantan        750,637 KL      929.558 KL
3     Central Kalimantan      467,237 KL      590.409 KL
4     West Kalimantan         715,889 KL      911.829 KL
5     South Sulawesi        1,142,582 KL    1.090.000 KL
6     Southeast Sulawesi      273,234 KL      345.236 KL
7     Central Sulawesi        358,840 KL      443.917 KL
8     North Sulawesi          445,579 KL      561.535 KL
9     Gorontalo               127,008 KL      159.535 KL
10    West Sulawesi           101,897 KL      129.996 KL
11    Papua                   272,835 KL      338.129 KL
12    West Irian Jaya         144,634 KL      178.511 KL
13    Maluku                  221,232 KL      288.896 KL
14    North Maluku            124,312 KL      165.925 KL

WDN IV
                                    2009          2010 *

1     West Nusa Tenggara      526,367 KL      655.698 KL
2     East Nusa Tenggara      349,100 KL      438.844 KL

*) Proposal by the government (BPH Migas)

Source: BPH Migas

Table - 7
Companies having BBM (oil fuels) storage facilities

Companies                     Location

Pertamina
PT. Petro Andalan Nusantara   Kuala Tanjung, Sumut, Belitung, and Riau
PT. Redeco Petrolin Utama,    Merak--Banten
PT. AKR Corporindo            Surabaya, Ciwandan--Serang--Banten
PT. Patra Niaga               Kabil--Batam
PT. Source Alam Utama West    Ketapang--West Kalimantan
  Kalimantan
  and PT. Dover Chemical      Cilegon--Banten

Source: Data Consult

Table - 8
BBM (oil fuels) transport companies in Indonesia

Companies                   License            Facility

PT. Cenderawasih Bumi       Transport of BBM   Tanker trucks
    Putera
PT. Aneka Kimia Raya        Transport of BBM   Na
    Corporindo
PT. Nusaraya Putramandiri   Transport of BBM   Na
PT. Harapan Abadi           Transport of BBM   Tankers and LCT
PT. Samudra Etam Energi     Transport of BBM   Tankers
PT. Caraka Tirta Pratama    Transport of BBM   Fleets of tugboat,
                                                 tankers, barges
PT. Kurnia Sakti Wibawa     Transport of BBM   Tanker trucks
PT. Global Trans            Transport of BBM   Tankers
    Energy International
PT. Dayanda Bersama         Transport of BBM   Tanker trucks and
                                               Motor-ships
PT. Surya Artha Chanya      Transport of BBM   Tanker trucks
PT. Adovelin Raharja        Transport of BBM   armada Tugboat,
                                                 Barges & Tankers
PT. Lumako Abadi            Transport of BBM   Tanker trucks
    Sejahtera
PT. Sarana Sindu Setia      Transport of BBM   Motor-ships
PT. Sabda Daiya Anda        Transport of BBM   Motor-ships
PT. Angkutan Samudera       Transport of BBM   Motor-ships
    Mentawai Indah
PT. Simeulue                Transport of BBM   Na
PT. Pelayaran Siberut       Transport of BBM   Motor-ships
    Jaya
PT. Antar Nusa Padang       Transport of BBM   Motor-ships
    Prim Kopelra            Transport of BBM   Motor-ships
PT. Spectra Samudra Line    Transport of BBM   Fleets of barges
                                                 and tankers
PT. Duta Bahari Menara      Transport of BBM   Fleets of and LCT
    Line
PT. Sumatera Sarana         Transport of BBM   Tanker trucks
    Sekar Sakti
PT. Ekatama Raya            Transport of BBM   Tanker trucks
PT. PERTAMINA               Transport of BBM

Companies                   Areas

PT. Cenderawasih Bumi       DKI Jakarta, Banten
    Putera                    and West Java
PT. Aneka Kimia Raya        DKI Jakarta and
    Corporindo                Surabaya.
                              Expansion:
                              Medan, Palembang,
                              Lampung, Banten and
                              Semarang
PT. Nusaraya Putramandiri   DKI Jakarta, Banten,
                              West Java, Yogyakarta
                              and Semarang
PT. Harapan Abadi           Bontang--East
                              Kalimantan
PT. Samudra Etam Energi     East Kalimantan
PT. Caraka Tirta Pratama    Java, Sumatra,
                              Sulawesi
PT. Kurnia Sakti Wibawa     DKI. Jakarta, Banten,
                              West Java, Central
                              Java, and East Java
PT. Global Trans            Islands of Java,
    Energy International      Kalimantan and
                              Sulawesi
PT. Dayanda Bersama         Central Kalimantan,
                              South Kalimantan
                              and Sulawesi
PT. Surya Artha Chanya      Jakarta, Banten and
                              West Java
PT. Adovelin Raharja        Java, Sumatra
                              Kalimantan, Sulawesi
PT. Lumako Abadi            Sumatra
    Sejahtera
PT. Sarana Sindu Setia      West Sumatra
PT. Sabda Daiya Anda        West Sumatra
PT. Angkutan Samudera       West Sumatra
    Mentawai Indah
PT. Simeulue                West Sumatra
PT. Pelayaran Siberut       West Sumatra
    Jaya
PT. Antar Nusa Padang       West Sumatra
    Prim Kopelra            West Sumatra
PT. Spectra Samudra Line    Indonesian waters
PT. Duta Bahari Menara      Kalimantan
    Line
PT. Sumatera Sarana         Sumatra
    Sekar Sakti
PT. Ekatama Raya            DKI Jakarta, West
                              Java, Banten
PT. PERTAMINA

Source: Ministry of ESDM, Data Consult

Table - 9
Marketing Areas of Pertamina per province by marketing units

                     Province
Marketing Units      (Marketing areas)

UPMS I (Medan)       Aceh, North Sumatra, West Sumatra, and Riau

UPMS II              Jambi, Bengkulu, Bangka-Belitung, South Sumatra
(Palembang)          and Lampung.

UPMS III (Jakarta)   DKI Jakarta, Bandung and West Java

UPMS IV              Central Java and Yogyakarta
(Semarang)

UPMS V (Surabaya)    East Java, Bali, NTB and NTT

UPMS VI              East Kalimantan, South Kalimantan, Central
(Balikpapan)         Kalimantan and West Kalimantan

UPMS VII             South Sulawesi, Sulawesi, Central Sulawesi,
(Makassar)           Gorontalo and South Sulawesi

UPMS VIII            Papua, West Papua, South Maluku and North
(Jayapura)           Maluku

Source: Pertamina

Table - 10
Number of SPBU (gas stations) units in Indonesia 2009

                              Number of SPBU
Companies                          units

PT Pertamina                       4.300
PT Shell Indonesia                    36
PT Petronas Niaga Indonesia           20
PT Total Indonesia                     2

Source: Pertamina, Shell, Petronas, Total
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Title Annotation:TRADE
Publication:Indonesian Commercial Newsletter
Geographic Code:9INDO
Date:Jul 1, 2009
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