Pertamina to hold tender for LPG stoves

The Jakarta Post, Jakarta

State oil and gas company Pertamina will hold a tender next month for the supply of 18 million LPG stoves as part of its kerosene-to-LPG conversion program planned for next year.

"LPG stove producers are requested to participate in the tender, to be held in November," Ansari Bukhari, a director general at the Industry Ministry, said Wednesday.

The kerosene-to-liquefied petroleum gas conversion program was rolled out by the government in December last year, with Pertamina taking the lead in implementation.

The goal of the program is to slash subsidy spending on kerosene, which costs the state about Rp 40 trillion (US$4.3 billion) a year.

Pertamina hopes to distribute 28 million free gas stoves and LPG cylinders to low-income households over the next four years.

For this year, the program is targeting Greater Jakarta and West Java, and will gradually expand to all of Java and Bali by 2009.

However, the program has run into some problems with reports of a lack of LPG supplies as well as defects in some of the stoves and cylinders.

Ansari said he expected no further hiccups next year.

"In 2008, Pertamina will be more experienced so there will be no problems. In 2007 we were all still learning."

The program is also supported by the State Ministry for Cooperatives and Small and Medium Enterprises.

In the 2008 state budget, the government will allocate some Rp 2.4 trillion for the purchase and distribution of LPG stoves and gas cylinders.

One kilogram of LPG is roughly equal in energy content to three liters of kerosene. (JP/AW)