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

Beras (Foto/Rizki Meirino)

Rabu, 21 Februari 2024 - 08:43 WIB

Gov’t to Continue Disbursing Rice Assistance

President Joko “Jokowi” Widodo has ensured that the Government will continue rolling out the rice assistance program for low-income families. The President made the statement when handing…

Ilustrasi pabrik beras. (Foto: DetikFood)

Rabu, 21 Februari 2024 - 08:40 WIB

Bapanas Head Ensures Availability of Rice Stock Ahead of Ramadan

The National Food Agency (Bapanas) has ensured the availability of rice for the fasting month of Ramadan and Eid al-Fitr 1445 Hijri/2024 CE. “We believe that there is enough rice for the fasting…

Receives Chairman of Jababeka (KIJA), Menpora Dito Ready to Support the Development of Sports SEZs

Rabu, 21 Februari 2024 - 08:23 WIB

Receives Chairman of Jababeka (KIJA), Menpora Dito Ready to Support the Development of Sports SEZs

Chairman of PT Jababeka Tbk (KIJA), Setyono Djuandi Darmono met the Minister of Youth and Sports of the Republic of Indonesia (Menpora RI) Dito Ariotedjo at the Kemenpora RI Office, Senayan,…

The Indonesian Embassy in Cairo Receives Aid for Palestine

Senin, 19 Februari 2024 - 17:39 WIB

The Indonesian Embassy in Cairo Receives Aid for Palestine

The Indonesian Embassy in Cairo welcomes the Radjiman Wedyodiningrat Warship (RJW-992) which arrived at the Al Arish Port, North Sinai Province of Egypt at 8.00 A.M. Cairo local time (13/02).…

Celebrating 65 Years of Indonesia - Cambodia Relations: Indonesian Embassy in Phnom Penh Organizes Roundtable Dialogue

Senin, 19 Februari 2024 - 17:31 WIB

Celebrating 65 Years of Indonesia - Cambodia Relations: Indonesian Embassy in Phnom Penh Organizes Roundtable Dialogue

Phnom Penh, Cambodia - The Indonesian Embassy in Phnom Penh organised a Roundtable Dialogue celebrating Indonesia-Cambodia Relations for 65 Years at the embassy (13/2). The event was attended…