Govt approves Pertamina?s plan to issue bonds

The government has given a principle permit to state oil and gas firm PT Pertamina regarding its plan to issue bonds worth US$500 million to increase its working capital.

 

“Pertamina is now waiting for a permit for foreign commercial loan from Bank Indonesia, Coordinating Minister for Economy and State Enterprises Ministry,” Deputy for Minister of State-owned Enterprises in charge of Mining, Strategic Industry, Energy and Telecommunications Affairs Roes Aryawijaya said in Jakarta on Tuesday.

 

He said that Pertamina’s plan for global bond issuance worth $500 million were delayed several times. The funds raised from the bond issuance will be earmarked for the company’s business expansion projects.

 

Meanwhile, minister of state enterprises Sugiharto said that Pertamina needs more capital expenditures to improve and renew its existing oil refineries. “Pertamina is able to conduct liability building either through conventional way or through bond issuance,” he said.

 

Sugiharto, said, however, that Pertamina had yet to submit the proposal for the bond issuance plan. The company is in the process of completing its financial report audit required for the bond issuance.

 

The government encouraged Pertamina to sell shares in its sound subsidiaries through an initial public offering (IPO) to boost the value of the subsidiaries, he said. (*)