‘Pertamina must retain its stake in Tugu Pratama’
Friday, September 17 2004 - 03:20 AM WIB
The management of Indonesia’s largest insurance company PT Tugu Pratama Indonesia (Tugu) has suggested that the state oil and gas company PT Pertamina to retain its stake in the insurance company, the Investor Daily Indonesia newspaper reported in its Friday edition.
The paper quoted Tugu president director Munir Sjamsudin as saying that Pertamina president had called him regarding this divestment plan. But so far there is no final decision on the matter.
“The subsidiary like Tugu must be retained because it is able to provide good profits to its shareholders although it (insurance) is not Pertamina's core business,” Munir said.
Munir added that Tugu as the largest insurance company in the country has Rp 2.01 trillion assets. Last year, Tugu recorded a net profit of Rp 80.8 billion. This year, Tugu is expected to book Rp 1.35 trillion premium before tax, and a net profit of 113 billion. (*)