JAKARTA (Yosefardi) – Government of Indonesia decided to liquidate Pertamina Energy Trading Ltd (Petral) and its subsidiaries and assures that the governance for oil and gas, mainly the supply concern, would improve.

Petral’s subsidiaries are Pertamina Energy Services and Zambesi Investment Ltd.

The governance for oil and gas supply is now taken over by the government and state oil and gas firm PT Pertamina. PT Pertamina Integrated Supply Chain (ISC) will take over all functions of Petral and its subsidiaries.

Petral, the trading arm of Pertamina based in Singapore, is regularly accused as ‘sanctuary of rent-seekers’.

Indonesia now imports 400,000 barrels oil per day and 600,000 barrels fuel per day. In 2014, Indonesia’s oil import reached US$37.73 billion, with average price of US$95.8 per barrel.