Gas Cylinder Manufacturers Complain about Pertamina
Tuesday, 17 October, 2006 | 16:00 WIB

Tempo Interactive, Jakarta: The Indonesian Gas Cylinder Manufacturers Association (Asitab) will complain to Vice President Jusuf Kalla because Pertamina will import gas tubes for the conversion of kerosene to gas.

According to Asitab, in addition to future losses, Pertamina’s tender delay will cause the lack of 800,000 tubes. “We will report this to the kerosene conversion program coordinator, the Vice President,” said Rjiptadi, Asitab’s General Chairman.

Tjiptadi said, due to the Pertamina’s tender delay, the steel order to PT Krakatau Steel is also delayed. “Within one and a half months, it’s impossible for us to complete the 800,000 tubes order,” he said.

Minister of Industry Fahmi Idris accused Pertamina of delaying the tube procurement tender. The result is domestic producers cannot fulfill the order by the end of this year. He is of the opinion that this becomes justification for tube imports from China.

“I wrote a letter asking that they carry out the tender for domestic producers, but there was no response. As soon as I reported this to the media, they responded. It was delayed, and it’s because of Pertamina,” said Fahmi last weekend.

Pertamina and Asitab, said Tjiptadi, are still negotiating. Pertamina is offering the low price. “In the meeting on Friday, Pertamina was still at around Rp70,000. We accepted at the price between Rp80,000 and Rp90,000. So far we are still negotiating,” he said.

There has been concern that national bamboo tube producers will suffer a large loss if imports are carried out. According to Tjiptadi, currently there is an additional investment of Rp15 billion to Rp20 billion, especially from new producers.

Fery Firmansyah
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