The campaign will form part the Government’s efforts to cut household fuel subsidies and save an estimated 20 trillion rupiah (US$2.2 billion) a year. Pertamina began replacing kerosene with LPG last November, and hopes to convert six million families across Indonesia to the cheaper fuel by the end of 2008.
A large number of agencies are understood to have been invited, including Saatchi & Saatchi and OgilvyAction, which holds Pertamina’s below-the-line business.
Indonesia has been bedeviled by kerosene shortages in recent years amid rumours that Pertamina has been withdrawing stocks to drive conversion to LPG, an allegation the company denies.
The pitch comes six months after Pertamina launched a campaign by Ogilvy & Mather to counter negative perceptions and revive falling market share. The company has come under increased pressure from foreign rivals such Shell and Petronas since Indonesia’s oil industry was liberalised in 2005.
