Minister Jonan: Pertamina Must Buy Oil Production Results from National KKKS

INDUSTRY.co.id - Jakarta - Energy and Mineral Resources (ESDM) Minister Ignasius Jonan said the government requires PT Pertamina (Persero) to buy all crude oil production produced by the national Cooperation Contract Contractors (KKKS).

This policy is a direct order from the President of the Republic of Indonesia, Joko Widodo during a Limited Meeting (Ratas) as part of a program to increase foreign exchange in the ESDM sector.

"Pertamina must buy production oil from the KKKS, and Pertamina will buy at market prices. So, do not produce it from here and then export it out and Pertamina imports from outside here, which surely Pertamina must buy," Jonan said after launching ESDM 136 Contact Center Service on Wednesday (08/15/2018).

Regarding Pertamina's purchase price, Jonan ensured that Pertamina would buy in accordance with the prevailing world oil prices, while the crude oil purchase mechanism from the KKKS would be prepared by SKK Migas.

"I do not know the difference between the price of crude exports and imports, but certainly Pertamina is obliged to buy according to the market price, it is not impossible, and SKK Migas will make a buying mechanism," Jonan explained.

The policy of requiring Pertamina to buy this national oil production will apply permanently. It is hoped that with this policy Pertamina can not only reduce crude oil imports, but also reduce the cost of transporting crude oil. "Yes, this is the President's order, it has been taken from the local area, so that it will save transportation costs," explained Jonan.