Jakarta Post - Securing the downstream petroleum industry
Securing the downstream petroleum industry
The Jakarta Post , Jakarta | Sat, 09/21/2002 7:30 AM | Opinion
Totok Sugiharto, Strategic Planning, PT Elnusa, Jakarta
With growing competition and deregulation, the rules of the game in the downstream petroleum industry in Indonesia will undergo some major changes in the next few years. The revolution in the downstream petroleum sector (crude oil and petrochemical refineries, transportation, storage and bunkering, trading and distribution) has brought free-market dynamics to the structure of the industry and the strategies of various players.
Deregulation of the downstream petroleum industry will undoubtedly lead to battles for market share, with new players attempting to gain shares from current incumbents. To succeed in this battle, what will be the most effective strategies for Pertamina in the few next years?
Following the new oil and gas law (No. 22/2001) there is the potential for new players as well as for Pertamina to build a strong downstream petroleum business.
To develop a strong position in the Indonesian futures markets, a key imperative is to understand market psyche, behavior and need. Segmentation of demand is a powerful tool to help identify the most profitable areas, and to develop a supply line that meets consumer needs more efficiently and effectively than the existing competition.