Trade Deal Boosts Domestic MFO Demand for Pertamina

Thursday February 14, 2019

A deal forged between Indonesia's state oil producer and four Indonesian companies to take the former's marine fuel oil will lop $200 million off the country's import bill.

The four firms, including miner PT Vale Indonesia, will secure their marine fuel supplies from Pertamina from March, according to local news provider the Jakarta Post.

The fuel will be cheaper for the companies while at the same time providing increased domestic demand for Pertamina.

Previously, they had opted to import marine fuel as buying from the state oil firm was considered too bureaucratic, the report said.