Pertamina's Plan to Import LPG Tubes Denied
Tuesday, 10 October, 2006 | 13:17 WIB

Tempo Interactive, Jakarta: The Department of Industry has rejected the plan of PT Pertamina (Persero) to import 200 thousand LPG tubes from China due to the conversion program of kerosene to LPG this year.

According to the Director General of Steel, Machineries, Textile and Multifarious Industries Anshari Bukhari at the Department of Industry, the import plan will hurt domestic industry.

The reason is that they have invested in several industrial activities to meet Pertamina's order. “The refusal was officially sent by Industry Minister Fahmi Idris to Pertamina. We are still waiting for their answer,” said Anshari yesterday (10/9) in Jakarta.

As reported, Pertamina will import 200 thousand units of LPG tubes with a capacity of three kilograms of 800 thousand needed tubes until the end of 2006. According to Managing Director of Pertamina Ari Sumarno, domestic tube producers are only capable of producing 600 thousand units of tubes until the end of 2006.

Pertamina has invited 14 domestic producers in order to meet the need for 800 thousand tubes. Rp569 billion has been allocated so as to provide 800 thousand tubes in 2006 and 10 million in 2007.

Anshari explained that as a state-owned enterprise, Pertamina should give priority to local entrepreneurs. The reason is that the project will be an additional value to domestic producers in addition to the absorption of workers.

With the limited capability of local producers, Anshari stated that the Department of Industry was asking the supply of the LPG tubes be extended to March 2006.

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