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AIRLINES EXPECTED TO CUT UPPER TARIFF LIMIT BY 15 PERCENT

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Coordinating Minister for Maritime Affairs, Luhut Binsar Pandjaitan.

Greatindonesia.co.id, Jakarta – At an afternoon tea event with journalists in Jakarta on Wednesday (8/5/2019), Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan said airline companies are expected to cut their upper tariff limit by 15 percent. All parties, including airline companies, have agreed to the plan, he said.

“It will decline by 15 percent. Garuda has said ok. In fact, Rini (state enterprises minister) has also said it,” he said.

The decline in the upper tariff limit should not disrupt the performance of airline companies, he said, adding that it will be evaluated.

Referring to public complaints about the high prices of air tickets, he asked them to remain calm and await a new decision on the upper tariff limit.

He said the government has made every effort to reduce the prices of air tickets by opening opportunities for the private sector to engage in the aviation turbine fuel (avtur) business, among other measures.

As such, state oil and gas firm Pertamina will compete with the private sector to provide avtur fuel and thereafter its price will be competitive.

“We are different from Singapore where (the avtur price) is almost 25 percent. We do not want the difference to be too much. Singapore itself imports it,” he said. (ade)

REAL SECTOR

PRODICTION NOT AFFECTED BY BALIKPAPAN REFINERY FIRE : PERTAMINA

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The Energy and Mineral Resources Ministry's acting Director General for Oil and Natural Gas, Djoko Suswanto. [21:35, 8/16/2019] Ka Resna:

Greatindonesia.co.id, Jakarta – State oil and gas company PT Pertamina is operating normally despite a fire at its Refinery Unit V (RU V) in Balikpapan, East Kalimantan Province, on Thursday morning.

“It was a minor fire, so it did not affect Pertamina’s production,” Djoko Suswanto, the Energy and Mineral Resources Ministry’s acting Director General for Oil and Natural Gas, said here on Thursday.

He said Pertamina had managed to control the fire that had engulfed one of the pipes at RU V, and that he had asked the company to investigate its cause.

Earlier, Pertamina spokesperson Heppy Wulansari had said the fire was localized and its main line was extinguished, but the cause of the accident would be known after the internal investigators finish their work.

Sparks were first detected around 9.30 a.m. local time, and Pertamina firefighters managed to handle the accident, she added.

There were no fatalities in the accident, Pertamina’s Vice President of Corporate Communications, Fajriyah Usman, told journalists here on Thursday (15/8/2019). (asn)

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REAL SECTOR

PLN TESTS SEVERAL CPO-FUELED GENERATORS

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The result showed that the combustion with CPO was not as good as compared to the use of 20 percent biodiesel blend or B20.

Greatindonesia.co.id, Jakarta – The State electricity company, PT Perusahaan Listrik Negara (PLN) has conducted tests using 100 percent crude palm oil (CPO) blend on several generators.

“We have conducted the tryout of the use of CPO blend on generators MAK#1 and MAK#2,” PT PLN Business Director for Kalimantan Region Machnizon Masri said at the Jakarta Convention Center Wednesday (14/8/2019).

The result showed that the combustion with CPO was not as good as compared to the use of 20 percent biodiesel blend or B20. In addition, the CPO-fueled generators also ran short of CPO supplies.

The tryout was conducted on diesel oil-fueled generators (PLTD) Kanan in Bontang, East Kalimantan province. PLN is currently preparing 167 tons of CPO for the running test of the CPO-fueled generators.

The use of vegetable fuel (BBN) and processed palm oil could save oil import budgets of up to US$500 million per year, Budi Santoso Syari, Processing Director of state oil and gas company PT Pertamina, said.

“Palm can produce 8.7 million tons of oil per year. The production from palm oil will be able to reduce the use of (fossil) fuel oil by up to 160 thousand barrels per day,” he said.

The 160 thousand barrels of oil per day is equal to $500 million, he added.

The area of oil palm plantations in the country has currently reached 14.3 million hectares. (asn)

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EAST JAVA

ANGKASA PURA INVESTS RP658 BILLION TO EXPAND JUANDA

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With the expansion of terminal 1, the airport can increase its capacity to 13.6 million passengers from 6 million passengers per year.

Greatindonesia.co.id, Sidoarjo, E Java – State airport operator, PT Angkasa Pura I, plans to invest Rp685 billion to finance the expansion of terminal 1 of the Juanda Surabaya Airport in East Java.

The expansion of the eastern side of terminal 1 is necessary to ensure the convenience of passengers, General Manager of Juanda Surabaya Airport, Heru Prasetyo, said in Sidoarjo, East Java, on Wednesday (14/8/2019).

“We apologize to passengers using the transportation services at Juanda Airport for the inconvenience caused while the construction work is underway,” he said.

With the expansion of terminal 1, the airport can increase its capacity to 13.6 million passengers from 6 million passengers per year.

“The expansion of terminal 1 and (the improvement of) the interior design and supporting facilities have started and will be completed in 14 months,” he said.

He said he would also ensure the orderly movement of passengers descending and boarding the plane.

“At this moment, passengers who are going to board the plane, do so from terminal 1 A and 1 B. In the future, they will be at terminal 1 A, and terminal 1 B will be only for passengers descending the plane,” he said.

Angkasa Pura 1 has named state-owned construction company, PT Waskita, as the winner of the project.

“We will work round the clock so the expansion project is completed soon,” he said.

The project also includes the expansion of the airport’s parking areas. (dra)

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