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

By : Hariyanto And Aldo Bella Putra | Thursday, August 16 2018 - 16:00 IWST

Menteri Energi dan Sumber Daya Mineral (ESDM) Ignasius Jonan
Menteri Energi dan Sumber Daya Mineral (ESDM) Ignasius Jonan

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.

News Comment

Today's Industry

The Jakarta Convention Center (1001malam.com)

Rabu, 22 Januari 2025 - 12:53 WIB

MICE Activities at JCC Halted, PT GSP Continues Legal Process

PT Graha Sidang Pratama (PT GSP), the investor and manager of the Jakarta Convention Center (JCC), revealed that the company is currently unable to run Meeting, Incentive, Convention and Exhibition…

Images By : Freepik

Sabtu, 14 September 2024 - 16:56 WIB

Essential Tips for Choosing Personal Health Insurance in the US

Choosing the right health insurance plan in the United States can be a complex task, especially with the variety of options available and the ever-changing landscape of healthcare policy. Here…

Images By : Freepik

Sabtu, 14 September 2024 - 16:53 WIB

The Top 10 Insurance Companies in the US for 2024

In the ever-evolving landscape of insurance, selecting the right company can significantly impact your financial security and peace of mind.

Images By : Freepik

Jumat, 13 September 2024 - 15:37 WIB

Why Airbnb Become Popular in 2024?

Airbnb fosters a more interactive experience between hosts and guests. Through direct messaging, guests can inquire about specific details, negotiate pricing, or clarify expectations, which…

Flag of the United Nations Organization.

Kamis, 15 Agustus 2024 - 14:26 WIB

Modena Officially Becomes a Member of the UN Global Compact

Commited to transforming towards sustainable business practices, Modena the global home appliance established over 60 years ago in Italy, officially became a member of the UN Globe Compact (UNGC)…