Pertamina to expand downstream business across Southeast Asia

Indonesian state-owned company Pertamina is looking to expand its fuel retailing business to Myanmar and Cambodia.

Plans to enter the Myanmar market are already underway with a bidding proposal made with Myanmar Petroleum Products Enterprise (MMPE) to sell oil products in the country. Pertamina hopes to establish a joint-venture with MMPE to sell co-branded fuels.

Ahmad Bambang, Pertamina´s marketing director, recently said it was likely that they will win the tender, reported Jakarta Globe.

Under the agreement, Pertamina would operate 18 fuel depots and 12 filling stations in Myanmar with an investment of $33 million, said Bambang.

The fuel retailer, which dominates the vast Indonesian market, is trying to expand its downstream business across the Southeast Asia, with Cambodia as a possible next step.

Pertamina has received an offer from a Cambodian firm to sell fuel in the country. It would sell its own branded fuel in Pertamina gas stations, but it would not enter the fuel depot market.