Pertamina to export diesel

Indonesian state-owned Pertamina has been licensed to export diesel, international media reported Monday.

Domestic sales are still set to be the priority, but the company has decreased its imports as refinery output has risen and demand for use in mining has fallen. Private companies such as Shell, ExxonMobil and Solaris Prima Energy are entering the diesel market and increasing supply, and a 2016 law requiring more use of biodiesel is lowering demand.

“We will try our best to sell in the domestic market,” Toto Nugroho, senior vice-president at Pertamina for integrated supply chain, was quoted by Reuters as saying.

Pertamina has also requested that it be given an import monopoly, which would force other retailers to buy their supplies from the NOC.

The ministry will “encourage companies to purchase from Pertamina first before they import,” ministry spokesman Dadan Kusdiana said. “Pertamina has also sent an offer letter to other companies that need [diesel].”

The company, which received the licence two or three weeks ago, is still developing an export plan and has not given details about when exports may start or potential volumes.