Pertamina losing 80b rupiah a day from subsidised fuel sales

Jakarta

INDONESIA'S Pertamina is losing 80 billion rupiah (S$8.2 million) a day from subsidised fuel sales, adding to losses from declining oil prices that have cut into first half profits in its upstream business, the state energy company said on Wednesday.

In January, South-east Asia's largest economy shifted the burden of fuel subsidies to Pertamina, forcing the company to accept losses to ensure retail fuel prices do not rise too fast for consumers in the country.