March 12, 2008
City gets Petro Gas 'lesson'
The city administration is seeking to renegotiate a working contract with a compressed natural gas (CNG) supplier for TransJakarta buses, PT Petro Gas, as it could not afford current prices, an official says.
The governor's development assistant, Nurfakih Wirawan, said the revision was needed since the existing debt with the company was already "too high".
"The price for CNG fuel applied by (state-owned gas distributor PT Perusahaan Gas Negara) PGN is Rp 400 higher than prices set by (state oil and gas firm) Pertamina," he said at City Hall on Tuesday.
The administration was already Rp 15 billion (US$1.63 million) in debt with the company because it had agreed to fund the construction of gas pipelines to two CNG stations.
The two stations are in Rawa Buaya, West Jakarta, and on Jl. Perintis Kemerdekaan, East Jakarta. TransJakarta operations of corridors 2 through 7 are dependent on four CNG stations, which serve 300 out of 396 buses.
The debt had worsened, the company claimed, as bus operators had failed to pay for up to Rp 10.6 billion worth of gas used over the past six months.
The operators, which are heavily dependent on the administration subsidies, paid fuel prices based on the administration's agreement with the PGN.
Operators, meanwhile, received tariffs from the busway management board, TransJakarta, based on how many kilometers their buses traveled.
Because of the administration's debt, Petro Gas had delayed its payments to state-owned gas producer PGN, Petro Gas president director Bagus Andika said.
"We are having financial difficulties due to the administration's delayed investment payments, and operators' delayed consumption payments," he said Monday.
Consequently, he said, Petro Gas had asked the administration and PGN to renegotiate their working contracts to resolve the problems.
Earlier, PGN had threatened to stop its supply to two CNG filling stations by the end of this month, due to the debts.
In response, Bagus had said, Petro Gas turned its back on PGN to teach the administration "a lesson".
PGN supplies CNG to Petro Gas, which pays the state-owned company using money it receives from bus suppliers running CNG-fueled buses.
Separately, the operational director of PT Jakarta Trans Metro (JTM) consortium, I Gusti Ngurah Oka, denied that his company had delayed CNG payments.
"We paid for CNG every month. If we were late with our payments, gas stations wouldn't allow us to fill our tanks," Oka said.
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