Criticized by Rizal, Pertamina still build IDR 5.8 Trillion Fuel Pipelines

KATADATA ? PT Pertamina (Persero) continues to build additional pipelines networks worth US$ 400 million or IDR 5.8 trillion for fuel distribution. This is the continuation from the recent critique from the Maritime Coordinating Minister Rizal Ramli regarding the plan, saying that is not relevant with the current needs of the state.

Pertamina VP Corporate Communication Wianda Pusponegoro said that Pertamina is still planning to add more networks of pipes to distribute fuel, which can go up to 1,283 kilometer. ?Later on we can elevate it twice the usual number,? Wianda said in Pertamina?s press conference in Jakarta, Friday (25/9).

The focus of additional pipelines will be in Java Island, which consists of routes: Balongan-Cikampek, Cikampek-Plumpang, Lomanis-Mais, Maos-Rewulu, Rewulu-Boyolali, Lomanis-Tasikmalaya, Tasikmalaya-Ujung Berung, Ujung Berung-Padalarang, Tuban-Surabaya, Tanjung Priok-Plumpang. The total length of the routes is around 956 kilometer, while the total needs for pipes development in the whole Java Island can reach 2,239 kilometer.

Besides to support the existing pipelines, according to Wianda, the additional pipelines are also to anticipate the fuel distribution to various regions. The risk by using trucks to distribute them is greater due to the traffic jams as well as potential fire disaster.

And to fund the pipelines development, Pertamina predicted that it would consume around US$ 400 million, which has included the land acquisition cost around the pipeline routes. ?The pipeline project will only take around US$ 400 million because the diameters of the pipes are not big, just 18 inches,? Wianda added.

The additional pipes are part of Pertamina?s long-term plan to increase the national fuel reserves, and it is even better considering that right now Indonesia still has no national sustaining reserves at all. There are only Pertamina?s operational reserves for 22 days for gasoline, and 12 days for LPG. Without the sustaining reserves, Indonesia?s energy sustainability concept is threatened.

And so, besides adding more pipelines, Pertamina is also planning to build storage tanks to cover for 7.02 million kiloliter of fuels in the upcoming 2025. The investment needed to build the storage tanks is US$ 1.23 billion, or if added with the pipelines development cost, the total amount becomes US$ 1.63 billion.

According to Wianda, Pertamina is currently building the storage tanks in Sambu Island with the capacity to reach 150 thousand kiloliter, and in Tanjung Uban with the capacity to reach 500 thousand kiloliter,? Wianda said.

Previously, Rizal Ramli saw that the plan to build storage tanks by Pertamina is not necessary right now, since Pertamina is still importing around 500 thousand barrels of crude oil, and 500 thousand of fuels every day. Compared to Pertamina, it is better for the traders or oil suppliers who build the storage tanks so that Pertamina can save up expenses that, based on his calculation, can reach US$ 2.4 billion.

Besides, Rizal also made Pertamina?s plan to build fuel distribution pipelines as a problem. ?Is this really urgent?? Rizal asked sarcastically. He based his opinion on the fact that all this time fuel is being transported using trucks and ships. And according to him, what?s more urgent now is to build gas pipelines for the energy source of the future.