Pertamina as an oligopoly leader?

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said that starting 2010 an oligopoly for distribution of subsidized fuel will be implemented (Kompas, 26/12/2008). For that, he went on, Pertamina will still be the "market-setter", because the government does not want a market that is "too competitive". Oh crap. What about the policy lowering the price to "follow the market"? Want to create now a mini OPEC in the country?

In the meantime, Pertamina, tapping the opportunity, is asking an adjustment for its "magic alpha", from 9 percent now to 12.5 percent on the assumptions of 50 dollar per barrel oil price and Rp 11,000 per dollar exchange rate. That would translate to an accounting price (or here falsely named "harga keekonomian") of Rp 5,400; if we keep the 10 percent value added tax and 5 percent vehicle fuel tax.