Pertamina switches tactics to save $100m in shipping costs

Jakarta: Indonesian state-run energy giant is looking to save up to $100m a year by switching its crude oil and LPG shipping to free on board (FOB) rather than cost and freight (CFR), as the conglomerate reacts to lower oil prices.

In a report carried by Platts, Pertamina officials said plans were afoot to grow the company’s fleet from 64 to 90 ships.

Pertamina has been tendering for a series of vessels with many expected to be built in Korea and China, but also a sizeable contingent to be built on Indonesian soil as Jakarta looks to boost maritime know-how in the archipelago.


Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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