Negative sentiment takes down Petronas


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(Jakarta Post) -Malaysia-based oil as well as gas association Petroliam Nasional Bhd (Petronas) has suspended most of the gasoline stations in Indonesia in between vexed sales, the move seen by many as partly shabby by persistent negative open view toward the adjacent country.
Energy as well as Mineral Resources Ministry's downstream executive Umi Asngadah pronounced upon Wednesday which 15 out of 19 Petronas fuel stations had been sealed down.

"They have been experiencing such low sales which they can no longer comment their operations," she pronounced in the text-message to The Jakarta Post.

PT Petronas Niaga Indonesia, the internal auxiliary of the Malaysian firm, is approaching to sell the suspended gasoline stations to alternative firms, according to Umi, who combined which Petronas would concentration upon alternative petroleum products such as lubricants.

Petronas has been in between the competitors of state owned PT Pertamina in the selling as well as placement of petroleum products in Indonesia since the liberalization of the market in 2006.

Other competitors have been PT Shell Indonesia, the internal auxiliary of tellurian oil as well as gas giant Royal Dutch Shell, as well as France-based Total Oil Indonesia.

Both unfamiliar subsidiaries have been faring much better than their Malaysian counterpart.

Shell Indonesia now operates 57 gasoline stations in Indonesia, of which 50 have been located in Jakarta as well as the rest in East Java. The association skeleton to open 8 new fuel stations this year.

Total Indonesia is also planning expansion, quite in Jakarta as well as Bandung, West Java, adding to the thirteen fuel stations ! now unde rneath the management.

Pertamina, whose stations have been managed both without delay by the association as well as as the franchise, operates around 5,000 stations. Pertamina is the usually association authorised to distribute subsidized fuels.

BPH Migas fuel placement executive Djoko Siswanto pronounced which open view toward Malaysia did fool around the partial of the bad sales of Petronas, saying "there is the bent from the open to refuse Malaysian products".

As adjacent countries, Indonesia as well as Malaysia have experienced the number of problems ranging from territorial issues to national heritage disputes.

"Our people did not like Malaysian products such as Petronas in between several problems both countries! had in between each other," he said.

Djoko combined which Petronas had also stepped down from opposed for the stipulate to distribute subsidized fuel, approaching to be awarded by BPH Migas this year, with Shell Indonesia replacing the Malaysian firm.

Indonesian Twitter users jeered the closure of Petronas stations, with one of them, Ratna Octaviana by her comment @nha_octa, pronounced "Good! No more Malaysia in this country."

Communications expert Effendi Gazali pronounced the preference by Petronas was triggered by dual factors.

On one part, he said, Petronas could not give the same treatment to the commercial operation which the competitors had provided.

"On the alternative hand, the open already has this negativity toward them in between disputes as well as the treatment our people have received in Malaysia. These dual aspects triggered the bad sales of Petronas, as the result the preference to shut down their fuel stations," he told the Post over the phone.

Marketing expert Handi Irawan D., who is chairman of Frontier Marketing @ Research Consultant, pronounced which Petronas, along with alternative unfamiliar firms such as Shell Indonesia as well as Total, entered Indonesia in 1998 in the hope that, after the In! ternatio nal Monetary Fund liberalized the economy, the nation would progressively cut the fuel subsidy.

"They [Petronas] have been waiting for years for Indonesia to cut the subsidy but it never happened. On the alternative hand, people here prefer to buy Pertamina products since the association has been rehabilitating their services," he said.

Petronas, he added, was more "realistic" than alternative unfamiliar competitors in Indonesia, as the result they sealed down their commercial operation upon the downstream sector whilst alternative unfamiliar firms still longed for "to give it the try".
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