Explainer-Indonesia's Pertamina faces pressure to move oil terminal after deadly fire

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JAKARTA : The Indonesian government wants state energy company Pertamina to move its Plumpang fuel terminal, one of the country's oldest and largest, after a fire broke out at the facility in Jakarta, killing 16 residents nearby.However costs and politics could get in the way of relocating the terminal, w

JAKARTA : The Indonesian government wants state energy company Pertamina to move its Plumpang fuel terminal, one of the country's oldest and largest, after a fire broke out at the facility in Jakarta, killing 16 residents nearby.

The incident was particularly deadly as there are homes just outside the fuel terminal's outer wall, while some other homes are only separated from the wall by a narrow street.Other incidents at Pertamina's refineries include a fire at its Balongan refinery in March 2021 and fires in the storage area at its Cilacap refinery in June and November in 2021.

Reclamation is ongoing and the land would be ready in 2024, Arif said, adding that Pertamina had previously approached the port company for a potential relocation.Pertamina is reviewing the government's proposal for long-term planning, spokeperson Fadjar said, adding the company is also reviewing relocation costs.

Building a new facility would be simpler than relocating dozens of families living in the nearby area, said Fahmy Radhi, an energy analyst from Gadjah Mada University. Several refineries were built in the 1970s and have been running at full capacity, making them vulnerable to breakdowns, he said.

Source: News Formal (newsformal.com)

 

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