[Kabar-indonesia] 17 oil/gas/mining reports: RI July Fuel Imports Highest in 9 Months; Conoco/Aceh

[JoyoNews at aol.com]

17 reports:

- Indonesia July Fuel Imports Highest in 9 Months
- Indonesia's BP Migas says Conoco still keen on
    Aceh gas field despite Exxon exit
- Indonesia Press: East Kalimantan Govt Sues
    Coal Mining Co
- Interview: Asian LNG Buyers Focus On 
  Security Over Price
- Analysis - Asia oil demand pick-up bodes well
    for refiners
- Asia Fuel Oil-Firm Indonesia demand fails 
  to support
- Indonesia sets up team to manage Asahan
    Alumina takeover
- Indonesia to build nuclear power plant
    in 2010
- Indonesia's Apexindo wins US$22.3 mln
    geothermal contract
- Indonesia Pertamina: LPG Imports May 
  Hit 3.7M Tons By 2012
- Indonesia's PGN needs US$190 mln 
  to supply gas to 77 stations
- Platts: Indonesia to pay $2.50/barrel in 
  Q3 gasoline tender, up from Q2
- Platts: Pertamina offers spot Duri crude 
  amid low run rates at Dumai CDU
- Indonesia's Pertamina industrial fuel prices 
  likely to be maintained in July
- Indonesia Pertamina:'06 Subsidized Fuel
    Sales Likely -13% [previously sent]
- JP: Power thefts high in Kerinci
- Asia Fuel Oil-Firm Indonesia demand fails
    to support
- Petromindo Headlines, Wednesday, 
  June 28, 2006

Indonesia July Fuel Imports Highest in 9 Months

By Maryelle Demongeot and Muklis Ali

SINGAPORE/JAKARTA, June 27 (Reuters) - Indonesia will keep oil product
imports at more than 12 million barrels next month, a third more than
expected, and maintain that level into August due to refinery outages,
industry sources said on Tuesday.

State-owned oil firm Pertamina has bought 12.71 million barrels of oil
products for July, the highest since last October and slightly above
the 12.36 million barrels bought for June, one source told Reuters.

"We have some problem with a refinery in July -- that's why we import
around 12 million barrels," said a second company official, who
declined to be identified. He said imports should run at 12-13 million
barrels in August.

Pertamina will import 3.6 million barrels of gasoline next month, up
200,000 barrels from June volumes, while fuel oil imports will run at
1.31 million. It will not import any jet fuel and will trim its
imports of gas oil by 230,000 barrels to 7.8 million barrels, still
strong enough to lend the market support.

Pertamina Marketing Director Achmad Faisal said earlier this month
that the company planned to cut oil product imports to about 9 million
barrels in July, staunching a buying binge that had ignited regional
diesel and gasoline values.

"Pertamina wants to maintain its stock level to secure domestic
supply. Our stock level is at 22 days currently," the official added,
reiterating its stock target of 21-22 days.

Last week officials said the 120,000-bpd Dumai refinery had cut
operations to 60 percent of capacity due to a cooling problem, forcing
the closure of two gasoline units.

The Pertamina official said operations had since risen to 80 percent
and the larger 8,000-bpd platforming units had restarted. A second
6,000-bpd platformer was still shut, he said.

"Several units at Dumai refinery are still shut, including a vacuum
unit. Therefore, we have to import more for some products," he said.

Pertamina also shut down its 47,500-bpd Sungei Pakning refinery on
Sumatra island for scheduled maintenance for 20 days from last week.

MARKET SURPRISE

Traders said the higher imports were a surprise after Indonesia
imported about 6.48 million barrels of diesel monthly last year.

"Many people did not expect Indonesia to import many cargoes due to
high prices," said a South Korean distillates trader.

"Already for June, their imports are over 8 million barrels and now
for July, the volumes are near 8 million barrels. This proves that
Indonesian demand is still healthy," he added.

Pertamina President and CEO Ari Soemarno said this month that
Indonesia's average imports would stand at around 375,000 barrels per
day (bpd) this year, implying a sharp rise in imports for the second
half of the year as Reuters calculations see Pertamina's imports at
less than 290,000 bpd during the first half.

Soemarno said gasoline demand was creeping higher, with customers
having digested last year's retail price hikes.

Imports in the first half of the year were exceptionally weak as end
user demand was hurt by a near doubling in fuel prices last October.
Diesel imports for January-May were at a paltry monthly average of 4.9
million barrels as Indonesia was keen to draw down bloated stockpiles.

(Additional reporting by Felicia Loo and Yaw Yan Chong)

------------------------------------

Indonesia's BP Migas says Conoco still 
keen on Aceh gas field despite Exxon exit

JAKARTA, June 28 (XFN-ASIA) - ConocoPhillips is still interested in
developing the Block A gas field in Aceh than on selling out following
the exit of its 50 pct partner Exxon Mobil Oil Indonesia, a government
official said.

Kardaya Warnika, chairman of oil and gas upstream regulatory body BP
Migas, told reporters a ConocoPhillips official conveyed this
sentiment to him.

'I met a high-ranking official of exploration and production from
ConocoPhilips' head office. The official said the firm wants to
develop the block as soon as possible,' Warnika said.

Exxon Mobil sold its 50 pct interest in Block A to a consortium
consisting of Medco Energi, Premier Oil and Japex for 51 mln usd last
month.

Development of the block had been held up by Conoco and Exxon Mobil's
disagreement over the price of gas sales to state-run fertilizer firm
PT Pupuk Iskandar Muda (PIM).

Block A is believed to have gas reserves of 1 trln cubic feet. This
was previously estimated to be big enough to supply liquefied natural
gas (LNG) to three fertilizer firms in Aceh for 20 years.

The three fertilizer firms were PT Pupuk Iskandar Muda (PIM) I, PT PIM
II and ASEAN Aceh Fertilizer (AAF). AAF was liquidated last year due
to the gas shortage.

--------------------------------------------------------------

Indonesia Press: East Kalimantan Govt Sues Coal Mining Co

JAKARTA, June 27 (Dow Jones)--The East Kalimantan regional
administration has filed a lawsuit against mining company PT Kaltim
Prima Coal over a divestment dispute, Bisnis Indonesia reported
Tuesday

The report cited documents and sources connected with the case, which
was filed in April with the International Center for Settlement of
Investment Disputes, an arbitration mediator established by the World
Bank.

The regional government has accused Kaltim Prima and its parent
company PT Bumi Resources (BUMI.JK) of breaking agreements with the
regional Cabinet, the report said, citing P. D. D. Dermawan, a lawyer
representing East Kalimantan in the case.

The suit alleged that Kaltim Prima broke an agreement to allocate
stock options to the regional administration and that it failed to
comply with a stipulation in the mining contract to divest up to 51%
of its shares to the administration on completion of its contracted
working term.

----------------------------------

Interview: Asian LNG Buyers Focus On Security Over Price

By Barbara Adam

SHENZHEN, China, June 28 (Dow Jones)--Long-term gas contracts,
including Australia's biggest ever trade deal, have left the North
West Shelf project with no capacity to commit to new contracts at
present, the project's marketing chief Peter Cleary said Wednesday.

"There's nothing at the moment that's available for new contracts,"
Cleary said in an interview with Dow Jones Newswires outside the
Guangdong Dapeng LNG Co.'s gas terminal near the southern coastal city
of Shenzhen.

Cleary is part of an official delegation to China, led by Prime
Minister John Howard, to mark the first shipment of liquefied natural
gas to the terminal from the NW Shelf project's A$25 billion contract,
struck in 2002.

When the 25 year deal was signed in Canberra, China loomed as a key
buyer of NW Shelf LNG, especially as it won the deal at the last
minute despite stiff competition from projects in Indonesia and Qatar.

Chinese natural gas use is expected to grow by 26% annually over the
next five years, outstripping the projected 17% growth in output,
according to official Beijing estimates.

But despite this hefty demand, other Asian customers have been willing
to pay more for Australian LNG this year, while Howard has also noted
during his trip that China isn't alone in seeking gas from the NW
Shelf and other Australian projects such as Chevron's (CVX) Gorgon
field.

Cleary said the NW Shelf project is fully occupied with the Chinese
deal at present.

"When we get some traction and some track record we can look at what
the future holds," he said. "We are concentrating on our traditional
customers, not just China, but Japan and Korea as well."

Cleary declined to comment on media reports the NW Shelf project is
seeking to renegotiate the pricing of the 25-year LNG deal with CNOOC
Ltd.'s (CEO) terminal.

"The contract is alive and well," he said. "We don't comment on any of
the contractual details with our customers."

Australia Remains Favored Supply Source

Howard, however, said Australia stands by its reputation as a reliable
partner in commodity deals.

"Australians don't welch on their contracts," he told a media briefing
in Shenzhen. "We keep our word, that's the reason people want to buy
from this country. We are reliable, we're safe, we deliver on time."

Cleary said LNG deals being struck at present aren't be driven by
price. "I think what we are seeing in a market where supply is tight
is buyers looking for security of supply in the long term, as the main
driver," he said. "A couple of years ago price was the main driver."

The Australian newspaper said Wednesday that energy companies in
Australia want to renegotiate the 2002 NW Shelf contract prices and
also want to ensure that future prices are set much higher than the
"lowball" deal struck four years ago. It also said China is "keen for
Mr. Howard to intervene in the gas negotiations".

The NW Shelf is operated by Woodside Petroleum Ltd. (WPL.AU). Its
equal partners are BHP Billiton (BHP), BP PLC (BP), Chevron Corp.
(CVX), Royal Dutch/Shell (RD) and Japan Australia LNG, which is an
equal joint venture between Japan's Mitsubishi Corp. (8058.TO) and
Mitsui & Co. (8031.TO). China's CNOOC is also a member of the venture
but doesn't have an interest in the North West Shelf's infrastructure.

Guangdong Dapeng President Thomas M. Ping said that the NW Shelf
contract doesn't contain any clauses that allow negotiations to
reopen.

Ping said Guangdong Dapeng LNG is negotiating to buy further LNG
supplies for the Shenzhen project which will provide 80 million people
with power in Guangdong.

"We have ongoing conversations with a number of potential suppliers
around the world, Australia is certainly one of our favorite places to
look for LNG," Ping told reporters before the official ceremony also
attended by Chinese Premier Wen Jiabao.

---------------------------------

Analysis- Asia oil demand pick-up bodes well for refiners

By Neil Chatterjee

SINGAPORE, June 28 (Reuters) - Asian oil firms look set to report
strong profits for refining crude in the second quarter as plant
maintenance and recovering demand lifted fuel prices, while the
third-quarter outlook looks positive.

Margins averaged above $8 a barrel for turning crude into oil
products, around double the first quarter and above the $5-$6 level
this time last year, as stronger Chinese and Indonesian demand for
imports met supply trimmed by refinery shutdowns.

"Demand is going strong and if you throw in a couple of curve-balls
from hurricanes and refinery problems, you could have a strong third
quarter," said Victor Shum, downstream analyst at Purvin and Gertz in
Singapore.

Margins at Asia's largest refiner Sinopec Corp. and Indian state-run
refiners such as Indian Oil Corp. (IOC) will be improved by
larger-than-expected retail price hikes in past weeks. But these will
still not be enough to raise their refining business out of the red,
analysts say.

But refining looks rosy for upgraded exporting refiners such as
India's Reliance , Singapore Petroleum Co. , South Korea's SK Corp.
and Japan's Nippon Oil Corp. , though share prices for many refiners
have weakened in the past two months amid a sell-off in emerging stock
markets.

Refining margins for cracking benchmark Dubai crude at a Singapore
plant averaged $8.16 a barrel in the past 15 days, after topping
$10.00 in May and nearing $8.50 in April. This is up from an average
$4.56 in the first quarter, Reuters calculations show <REF/MARGIN1>.

Simple export-oriented refiners in Singapore -- a proxy for the region
as a whole -- have also made a profit this month after averaging above
$2.00 a barrel in April and May, following losses in the first quarter
of 2006 and in the second quarter last year.

"Given the strong discounts available on heavy/sour crudes and the
widening differentials between transportation fuels and heavy products
(fuel oil), we believe that complex refiners will continue to capture
superior margins," said Merrill Lynch.

Margins for making gasoline and diesel from Dubai crude are
historically high at above $18 a barrel, but fuel oil slid to a record
discount of more than $15 a barrel below Dubai crude <ASIA/SWAP/FUEL>
on Wednesday to dampen the second-quarter rebound for basic refiners.

Asian refining margins had tumbled in February to their lowest level
since mid-2001 on weaker regional demand, ending the profit rally of
the past few years as higher retail prices eat into consumer demand in
countries such as Indonesia, while geopolitical worries boosted costs
for refiners buying crude.

FUNDAMENTAL SUPPORT

But signs of stronger demand in the past few months have put margins
back on the boil despite $70 crude. Implied oil demand in the region's
top consumer China accelerated 13.5 percent in May, up from 10.8
percent in April to solidify a rebound from last year's anaemic 3
percent demand growth [ID:nPEK99410].

The potential for hurricanes cutting supplies in the United States
could also provide arbitrage opportunities for Asian refiners. Last
autumn when Katrina and Rita damaged U.S. refineries a tighter global
supply picture boosted Asian margins.

"With gasoline demand running about 1 percent ahead of last year's
record levels, it is our belief the domestic U.S. refining system will
struggle to meet peak demand in the coming months," said Merrill
Lynch, adding arbitrages could mean margin spikes.

The driving season in Japan, the second-biggest gasoline market after
the United States, is set to peak in August, which could also draw in
imports. Japan's gasoline stocks are 7 percent below a five-year
average level for end-June.

EXTRA SUPPLIES

Indonesia, Asia's top gasoline and diesel importer, boosted oil
product imports to more than 12 million barrels in June, up 68 percent
from May as refinery outages limited domestic output. Imports are
expected to stay over 12 million in July and August.

"Import data out of major importers Indonesia and Vietnam looks strong
-- consumers are gradually adjusting to these prices and demand has
recovered," said Shum.

Stronger demand met with tighter supplies from refinery maintenance
shutdowns that peaked in the second quarter, shaving 5.2 percent off
capacity, or more than a third higher than 2005, to boost profits for
those plants still pumping.

But this factor will not apply in the third quarter as refineries
return to full output, increasing regional supplies and taking away
some of the support for margins.

Longer-term, strong regional refinery margins are expected to ease by
the end of the decade as a slew of new refineries come onstream in
China and India.

------------------------------

Asia Fuel Oil-Firm Indonesia demand fails to support

SINGAPORE, June 27 (Reuters) - Asian fuel oil prices rose for a second
consecutive day on Tuesday but the product's crack spreads to Middle
East Dubai crude fell to an all-time low, traders said.

The market remained weakened by abundant Western inflows despite
above-average Indonesian demand, healthy enquiry volumes from China
and a tight market for prompt marine fuels in Singapore.

Prices for the benchmark 180-cst fuel oil rose by $6.35 to $329.75 a
tonne, while the 380-cst grade gained $7.85 to $322.85, with no deals
done in the cash market.

Physical differentials for the 180-cst grade were slightly weaker at a
discount of $2.65 a tonne, down 15 cents, while the 380-cst
differential improved marginally to minus 12.5 cents.

Western trader Glencore continued its support of the 380-cst market,
bidding strongly at a discount of 25 cents to Singapore spot quotes
for 20,000 tonnes for July 23-27 loading, after buying 585,000 tonnes
since June 1.

The product's physical crack value plunged to another all-time low of
minus $15.90 a barrel, down 50 cents, while the front-month July crack
swap fell to $15.45 a barrel, down 55 cents.

Western imports totalling 3.3-3.4 million tonnes for each month of
June and July, the highest monthly volume in at least two years
[ID:nSP2095], has inundated the market since the start of the month.

Indonesia's Pertamina bought 1.31 million barrels (202,000 tonnes) of
140-cst for July delivery, up 40.9 percent from June volumes.
([ID:nSP87804])

Chinese buyers have sought barrels all month but deals were limited by
rising freight costs and wide buying and selling ideas for
Chinese-specification 180-cst cargoes.

The first half of June saw lower-than-expected import volumes of
550,000 tonnes, down 30 percent from first-half May, into China's
southern Huangpu port [ID:nSP213101].

Vietnam's Saigon Petroleum bought 4,000-5,000 tonnes of 180-cst, for
July 8-12 delivery to the southern port of Catlai, was sold to Vitol
at a premium of $25-$26 a tonne to Singapore spot quotes, on a
cost-and-freight (C&F) basis. ([ID:nSP218106])

  PRODUCT                             BUY/SELL     PREV BUY/SELL
  
   JUL LSWR*                             54.00/54.30       52.25/52.75
  JUL FUEL OIL (180 CST)  329.50/330.00     323.20/323.60
  JUL FUEL OIL (380 CST)  322.25/323.00     314.75/315.25
  JUL FUEL OIL SWAP        331.75/332.00     325.25/325.75
  AUG FUEL OIL SWAP      335.75/336.00     329.50/330.00
  (* dollars per barrel)
 (** yuan per tonne)

--------------------------------

Indonesia sets up team to manage Asahan Alumina takeover

JAKARTA June 27 (Asia Pulse/Antara) - The government has set up a team
to negotiate the acquisition of the Japanese stake in the Asahan
alumina plant in North Sumatra.

The alumina plant is a joint venture between the government and a
consortium of 12 Japanese investors named Nippon Asahan Aluminum
(NAA).

The joint venture company established in 1976 is 60 per cent owned by
the Japanese consortium and 40 per cent by the government.

Metal, Machine, Textile and Multifarious Industries Director General
Ansari Bukari said the fact that the take over will guarantee supply
of alumina for domestic consumers.

In line with its contract, the company currently exports most of its
production to Japan.

--------------------------------------------------------------

Indonesia to build nuclear power plant in 2010

JAKARTA, June 28 (Xinhua) -- Indonesia would start to build nuclear
power plant in 2010 in Central Java province, which targeted to
complete in five years, Mines and Mineral Resources Minister Pornomo
Yusgiantoro said here on Wednesday.

Talking to reporters after meeting with Vice President Jusuf Kalla and
other ministers and officials from the energy sector at the vice
presidential office, Purnomo said that the government would begin to
arrange the building of the plant next year.

The capacity of the plant was targetted at 4,000 megawatts by 2025.

"The target would be reached gradually," he said.

The plant would be built in Gunung Muria in northern part of Central
Java, according to Pornomo.

Indonesia's energy blueprint has stipulated that the country will have
diversification of energy sources, including nuclear energy.

---------------------------------------------------------------

Indonesia's Apexindo wins US$22.3 mln geothermal contract

JAKARTA, June 28 (Asia Pulse/Antara) - PT Apexindo Pratama Duta Tbk
(JSX:APEX) has won a contract worth US$22.3 million from Star Energy
Holdings Pte Ltd and Magma Nusantara Limited for the exploration of
geothermal energy sources in the country.

Under the contract, Apexindo will work to support the operation of
Wayang Windu geothermal power plant in West Java, Apexindo managing
director Hertriono Kartowisastro said here Tuesday.

The implementation of the contract will be started in August 2006 in
Pengalengan, West Java. Using its Rig 5, Apexindo will develop a
drilling project for at least one year, with an extension option.

Apexindo's Rig 5 is currently still being used in a drilling project
of state oil and gas company Pertamina and Amerada Hess Jambi Merang
in Jambi. After completing the project, Rig 5 will be used to work on
the geothermal well in West Java.

---------------------------------------------------------------

Indonesia Pertamina: LPG Imports May Hit 3.7M Tons By 2012

JAKARTA, June 27 (Dow Jones)--Indonesia's rising demand for liquefied
petroleum gas may require annual LPG imports of as much as 3.7 million
metric tons by 2012, senior officials at state-owned oil firm
Pertamina (PTM.YY) told Dow Jones Newswires Tuesday.

Indonesia will see annual LPG imports of 1 million tons in 2010, then
up to 3.7 million tons by 2012, said Achmad Faisal, Pertamina's fuel
division head.

Domestic refineries can only supply 50% of the projected 6.8 million
tons of annual domestic demand in 2009-2012, President Director Ari
Sumarno said.

"The remaining 3 million (tons) to 3.4 million (tons) will have to be
imported," Sumarno said, without elaborating on the costs and sources
of those future imports.

The projected imports hinge on the government's plan to fully phase
out domestic household kerosene in favor of LPG by 2012.

The cash-strapped government of President Susilo Bambang Yudhoyono
wants to cut the use of kerosene to reduce ballooning fuel subsidy
costs amid surging world crude prices.

The substitution of kerosene with LPG will help save Indonesia IDR21
billion in fuel subsidies in 2006, government forecasts issued in May
indicated.

Earlier this month, Minister of Energy and Mineral Resources Purnomo
Yusgiantoro said the gradual introduction of LPG as a cooking fuel
would cut kerosene demand by 10 million kiloliters by 2010, without
specifying whether that forecast was a cumulative total or a one-year
target.

---------------------------------------------------------------

Indonesia's PGN needs US$190 mln to supply gas to 77 stations

JAKARTA, June 27 (Asia Pulse/Antara) - State gas distributor PT
Perusahaan Gas Negara (PGN) said it needs an investment of US$190
million to supply gas to 77 gas stations to be built in Jakarta until
2009.

The fund is expected to come from the state budget and investors, PGN
President Washington Simanjuntak said.

Washington said Jakarta needs 30 million cubic feet of gas a day to
fuel 900 city buses, 16,732 taxies and 5,000 other city transport
vehicles.

The government plans to use gas instead of oil for fuel of public
transport vehicles, therefore, Jakarta will need to build 77 gas
filling station until 2009.

--------------------------------------------------------------

Platts Commodity News
June 28, 2006

Indonesia to pay $2.50/barrel in Q3 gasoline tender, up from Q2

Indonesia's state-owned Pertamina is to pay an average $2.50/barrel
for its third quarter gasoline term tender, up from $2.00/barrel in
the previous quarter amid weaker supplies of gasoline in the region,
especially China, traders said.

Pertamina has finalized the new premium for 88 RON gasoline at an
average of close to $2.50/barrel to Mean of Platts Singapore 92 RON
unleaded gasoline assessments on a CFR basis.

Pertamina's average monthly term volume of 1.6 million barrels for the
Q3 tender from term suppliers Petral, PPT, Kipco, Sinopec, Chinaoil
and Petronas is lower than the 1.8 million barrels for Q2, as domestic
demand has been slow to recover since Jakarta cut its fuel subsidies
last October, which saw subsidized fuel prices surge by 126%.

Even an anticipated rise in seasonal peak demand during the school
holidays from June to July failed to materialize.

Gasoline consumption last week was around 43,300 kl/day (273,300 b/d)
or 9.3% less than the usual offtake of 47,700 kl/day - even slightly
less than Pertamina's gasoline sales of 43,900 kl/day in the first
week of June, according to Pertamina in a recent press release.

Pertamina had earlier expected domestic demand to rise in June and
July during the school holidays and raised its tolerance fuel supply
to 47,700 kl/day from 44,000 kl/day, leading it to import 5.4 million
barrels of gasoline in June alone.

Its unusually high import level in June was also partly because of
refinery problems and partial shutdowns. --Irene Tang,
irene_tang at platts.com

---------------------------------------------------------------

Platts Commodity News
June 28, 2006

Pertamina offers spot Duri crude amid low run rates at Dumai CDU

Indonesia's Pertamina is offering prompt Duri crude in the spot market
due to low run rates at its Dumai refinery, market sources said
Wednesday.

The state-owned oil and gas company was forced to idle a 120,000 b/d
crude distillation unit for two days due to technical glitches.

The unit has since restarted but run rates were only at 60%, Platts
reported June 23.

Two platformers with a capacity of 6,000 b/d and 8,000 b/d were also
shut and expected to come on stream only in early July.

The low run rates have made it difficult for Pertamina to absorb its
entire crude inventory at Dumai and has triggered the spot sales of
July-loading Duri, one trader told Platts.

The barrels, which were said to be amounting to "couple of hundred
thousand" could weigh on spot premiums of the heavy, sweet Indonesian
crude, he added

Differentials have edged 10 cents/barrel lower with a recent sale of
300,000 barrels into Taiwan believed to have concluded at 80
cents/barrel over the Indonesian Crude Price for Duri. Duri premiums
were assessed at 90 cents/barrel over the ICP on June 27, Platts data
showed. Earlier this year, Pertamina offered Duri in the spot market
due to the outage at its 125,000 b/d Balongan refinery in West Java.

---------------------------------------------------------------

Indonesia's Pertamina industrial fuel prices likely to be maintained in July

JAKARTA, June 27 (XFN-ASIA) - PT Pertamina said the retail prices of
its non-subsidized industrial fuel products in July are likely to be
maintained given the stable price of crude oil.

Pertamina marketing director Achmad Faisal told reporters the
calculation of July prices "is not final yet but it looks like there
will be no increase because the crude price is stable."

Pertamina raised the prices of its non-subsidized fuel products by
2.3-12. 9 pct this month.

The company adjusts its non-subsidized fuel prices every month based
on changes in Mid Oil Platts Singapore (MOPS) prices and sets
different prices for three different regions.

The price of non-subsidized premium gasoline for June was 6,174 rupiah
per liter for region one, 6,307.70 for region two and 6,442.29 for
region three.

Kerosene was set at 6,181.69 rupiah, 6,315.31 rupiah and 6,449.92
rupiah per liter for regions one, two and three, respectively.

Non-subsidized high-speed diesel for transportation was set at
6,288.32 rupiah, 6,425.97 rupiah and 6,562.60 rupiah per liter for
each of the three regions while for industry use, it was priced at
6,014.91 rupiah, 6,146.58 rupiah and 6,277.27 rupiah per liter,
respectively.

Two other non-subsidized industrial fuel products are marine fuel oil
and marine diesel fuel.

Industrial users have been paying full market prices for fuel since
last July after the government moved to cut its subsidy spending.

------------------------------------------------------------------

Indonesia Pertamina:'06 Subsidized Fuel Sales Likely -13%

JAKARTA, June 27 (Dow Jones)--Consumption of government-subsidized
fuel in 2006 may fall 13% below the government's quota for the year, a
senior executive of state-owned oil firm Pertamina (PTM.YY) said.

Domestic demand for subsidized fuels will likely total 36 million to
39 million kiloliters in 2006, compared with an official quota of 41.5
million kiloliters, Achmad Faisal, Pertamina's fuel division head,
told Dow Jones Newswires Tuesday.

The projected decline in demand reflects the impact of a government
move that effectively more than doubled subsidized fuel prices on
October 1, 2005.

The cash-strapped government of President Susilo Bambang Yudhoyono
plans to eventually phase out all fuel-price subsidies to limit the
impact on the national budget of rising crude oil prices on the global
market.

Consumer demand for subsidized fuels has fallen as a result of the
narrowing price differential between subsidized and non-subsidized
products.

Indonesia's 2006 national budget includes IDR54.3 trillion ($6
billion) in fuel subsidies. Subsidized fuel quotas include 10 million
kiloliters of kerosene and 17.8 million kiloliters of gasoline.

------------------------------------------------------------------

The Jakarta Post
June 27, 2006

Power thefts high in Kerinci

JAMBI: Power thefts in Kerinci regency have cost the state billions of rupiah.

The head of state-owned power company PT PLN in Kerinci, Purnawarman,
said the company believes some 10 percent of its 35,190 customers in
the regency are involved in power thefts. He said the company would
take action against a number of them as soon as possible.

"We have targeted about 1,000 customers in our operation," he told The
Jakarta Post .

PLN has sent a letter to Kerinci Regent Fauzi Si'in asking for
cooperation in addressing the problem.

"If the situation is not dealt with immediately, we could face bigger
losses," he said.

PLN will work with Kerinci police and military police in the
operation. It has also publicly announced its plans to take action
against theft.

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Petromindo Headlines, Wednesday, June 28, 2006

Oil/Gas: 

- SBY inaugurates three firms with $95 million investment on Batam
- Pertamina wins case at KPPU
- Regional LNG: Australia LNG congratulates China on commissioning 
  of new LNG terminal
- Lapindo management quizzed
 
Mining: 

- Bumi's Q1 profit falls on high production costs

Power: 

- Purnomo warns of possible failure of 10,000-MW power project
- Govt will not provide guarantee to PLN’s power projects
- Govt to speed up nuclear power project
 
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Joyo Indonesia News Service
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