INDONESIA - Shipping.

Pertamina has maritime transportation fleets carrying crude oil, petroleum products, gas liquids and LNG exports and imports. There are ships for distribution of fuels, non-fuel, and petrochemical products among Indonesia's numerous islands. Pertamina has its own and chartered tankers. Other Pertamina activities in the field of logistics are brokerage, ship agency, crewing, etc. In 2002, Pertamina had 130 maritime tankers consisting of 32 vessels owned by the company, 96 ships chartered, and two ships for floating storage. The tanker fleets then had a total capacity of 48.9m long tons.

There are Pertamina units storing and marketing various motor fuels, lube oil, LPG, LNG, aviation kerosine, petrochemicals, and other non-fuel products for domestic consumption. Exports and imports are handled by its trading units.

Pertamina has 13 subsidiaries and 16 joint ventures operating in various industries such as hotels, upstream and downstream business support services, airlines, dockyards, hospitals, oil drilling services, management services, contracting, storage and supply, insurance, manufacturing, and other activities. There are Pertamina subsidiaries and joint ventures in portfolio investment.

Shipping Security: President Susilo Bambang Yudhoyono, in office since last October, intends to boost the country's naval forces to focus on the safety of shipping traffic on the Indonesian side of the Strait of Malacca between the island of Sumatra and the Malay peninsula. There have been attacks against oil and gas tankers along this vital waterway in recent years.

Of particular concern are attacks by political groups against tankers on the Indonesian side of the waterway. Indonesian groups singled out after 9/11 include Jemaah Islamiyah, which is believed to have links with Al-Qaeda, and separatists from Aceh province in northern Sumatra.

The volumes of oil, gas liquids and LNG moving along the straits have risen sharply in recent years.