Indonesia proposes joint venture for Pertamina assets in Timor Leste

Indonesia has proposed to the Timor Leste government that the two sides form joint ventures to manage assets of state oil and gas firm Pertamina and other Indonesian assets in that country, Foreign Minister Hasan Wirayudha said on Monday as reported by Detik.com news website.

Such proposals had been discussed in meetings between foreign ministry officials from the two countries, Hasan told reporters in Jakarta.

?We will try to find creative ways for handling the assets. We may change Indonesian assets in Timor Leste into equity in the framework of joint ventures,? the minister said.

Hasan said aside from Pertamina assets, Indonesia still has assets belonging to Bank Indonesia (Central Bank), state-owned Bank Mandiri and state electricity company PLN.

?Pertamina has fuel depots in that country, which could be developed into new forms of cooperation between the two nations,? the official said.

Pertamina assets in Timor Leste have total value of some US$3.2 million, according to company president director Baihaki Hakim.

Baihaki said his company would continue supplying fuel to Timor Leste where foreign fuel companies like BP and Phoenix Fuel were also doing business.

Timor Leste had been an Indonesian province for some 25 years before separating from Indonesia in 1999. (*)