More Fuel Reserves, Pertamina to rent Adaro Storage Tank for 7 Years

KATADATA ? PT Pertamina (Persero) keeps on trying to increase the national energy sustainability level by targeting to add the fuel operational reserves from 22 days right now to be 30 days in the future. One of the ways is to rent fuel storage tank that belongs to the private sector.

Pertamina has signed an agreement for strategic partnership with PT Adaro Energy Tbk. for supplier service as well as to optimizing the fuel infrastructure in Jakarta, Friday (11/9). Pertamina would also rent fuel terminal station that belongs to PT Indonesia Bulk Terminal (IBT), Adaro Energy?s subsidiary in Mekar Putih, Kota Baru (South Kalimantan). The fuel terminal station consists of storage tank with 60 thousand metric tons capacity and 2 jetty facilities with total capacity of 1.4 million kiloliter per year.

Pertamina would also rent the IBT?s terminal for 7 years, starting from the upcoming early November until October 2022. Pertamina Marketing Director Ahmad Bambang said that the use of IBT?s terminal would help the government to increase the sustainability level of the national gasoline supply. ?Besides, it is a strategic supply point for Pertamina to promote the gasoline products,? Ahmad added.

Meanwhile, the Adaro Energy President Director Garibaldi Thohir saw that the partnership is a form of synergy between Pertamina and private sector to increase the sustainability level of national energy. ?Our logistic infrastructure is ready to support the national energy sustainability, besides the fact that it?ll also ensure the fuel availability to support the Adaro Energy Group?s operational activities,? the President Director said.

In the partnership agreement, Pertamina would also supply Biosolar for the needs of Adaro Energy subsidiary, which is PT Adaro Indonesia. The agreed volume of buying and selling of the fuel is around 400 to 500 thousand kiloliter per year with a period of 7 years until 2022.

Garibaldi also said that the Solar needs for Adaro?s coal production would reach 600 to 700 thousand kiloliter per year. ?In the mean time there has not been any increase in oil supply because the coal production is still not so conducive yet. And so, we cut down the production so that the fuel usage would not increase as well,? Garibaldi explained.

Previously, the Energy and Mineral Resources (EMR) Minister Sudirman Said explained that currently the national reserves only depend on Pertamina?s operational reserves, which has the total capacity for 22 days. With the attempt to increase the sustainability level of the national energy, then the national reserves must be increased up to 30 days capacity, and there are two ways to reach that target. First, government needs to have a new investment, either by Pertamina or private sector. Second, government needs to optimize the fuel storage infrastructures that belong to state companies or private.

Other than making a good use of the private-owned storage tank by renting it, Pertamina also planned to build their own storage tanks. The investment value needed to build such a thing would reach US$ 2.4 billion. However, the Maritime Coordinating Minister Rizal Ramli does not agree with this plan because he said that it is not efficient and it will dearly burden Pertamina?s finance. Compared to Pertamina, it is better for the sellers or suppliers that build the storage tanks.

Until today, Indonesia still does not have any national energy reserves. Indonesia only has operational reserves that belong to Pertamina, and it would only be enough for 22 days. The target is to add the capacity to reach 30 days, and this would need investment at around US$ 17.25 billion or IDR 224 trillion.

The national reserve is needed for the anticipation of any emergency condition within the country, like let?s say if there was tsunami that caused a power blackout that the nation might need oil-fueled generators to power up basic-needs machineries that could save lives.