REPUBLIKA.CO.ID, SURABAYA -- The new president director of state-owned oil company Pertamina, Dwi Soetjipto, admitted that the company's refineries are very old and, therefore, cannot produce gasoline with research octane number (RON) 88.

"However, RON 88 gasoline is no longer recommended by world oil players," he said at a national seminar held by the Indonesia Magister Management Program (APMMI) here on Saturday (13/12).

Soetjipto stated that the main problem that hindered production of gasoline with a higher RON was its refineries. He added that he was aware of the outdated nature of Pertamina's refineries.

"The maintenance cost for the oil infrastructure is very high, and it is only able to produce nafta (heavy gasoline)," he remarked.

In view of that, Soetjipto noted that Pertamina has to import RON 92 as an additive to turn nafta into RON 88 gasoline.

"We guarantee that there are no political reasons behind the processing of crude into gasoline," he affirmed, referring to reports that Pertamina bought RON 92 to be processed into RON 88.

Soetjipto also stated that in view of the situation, the oil company had cooperated with three global oil firms to build a new refinery.

He hoped that the new refinery would solve the problem and dismiss the negative perception that the public has towards Pertamina.

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