REPUBLIKA.CO.ID, JAKARTA -- Pertamina may suffer from potential loss due to the fire that engulfed the fuel storage tanks in the Balongan Refinery area. The damage is estimated at 8 million USD or equal to IDR 115 billion.
An Economist of Institute for Development of Economics and Finance (Indef) Abra Talattov explained that the potential loss were calculated based on fuel production cost at 20 USD per barrels. In case Pertamina lost 400.000 barrels during the shutdown, the cost would be towering to 8 million USD.
“It is only potential loss from the shutdown. They could suffer from another damage, such as burned asset. The number will be bigger,” Abra said on Wednesday (31/3).
Pertamina temporarily replaces the supply of fuel from Balongan Refinery to Cilacap Refinery and the Trans-Pacific Petrochemical Indotama (TPPI) Refinery. However, it is not sure whether both refineries could cover the production from Balongan.
Abra said, Pertamina also has to compensate the people affected by the fire. Then, another loss is its reputation on oil and gas industry. Pertamina is currently known to have several ongoing oil and gas infrastructure projects, mainly refinery.
However, this incident can also be a momentum for Pertamina to attract investor. Abra said, the first thing that Pertamina should do is conducting investigation and be transparent on the real condition.
“With the ongoing risk mitigation, the risk is measurable. Pertamina also shows that they are resilient,” he said.
It resiliency is shown from their success on maintaining fuel supply despite the incident. The incident itself also shows that Indonesia still need to build more refineries. Moreover, about 60 percent of Indonesia fuel needs is still imported. “It means that investors see the urgency of new refineries in Indonesia,” Abra said.