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JAKARTA - INDONESIA'S state-owned Pertamina has edged out Malaysia's Petronas and a local competitor to win approval to distribute subsidised fuel in Indonesia in 2008, the oil and gas regulator said.
The approval will allow Pertamina to oversee the distribution of an estimated 35.84 million kilolitres, BPH Migas head Mr Tubagus Haryono said on Thursday.
The 2008 licensing process saw competitors apart from Pertamina permitted to compete for the first time.
Mr Haryono said the companies that had sought licenses were local company Aneka Kimia Raya (AKR), Malaysia's state-owned Petronas, Royal Dutch Shell, Total, and BP.
'Of the six companies, Pertamina, AKR and Petronas qualified. But judging from all aspects, only Pertamina is better prepared,' he said.
'AKR and Petronas' weakness is lack of infrastructure,' he said, referring to the limited number of gas stations and fuel storage facilities owned by the two.
The Indonesian government subsidises about 60 per cent of nationwide fuel consumption.
The government last hiked prices in October 2005 by an average of 126 per cent, triggering a spike in inflation and interest rates. -- AFP
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