Minister: Oil, gas holding company to be set up in Q1 2018

Petromindo|Dasir

State Minister of State Owned Enterprises Rini M. Soemarno said that the proposed oil and gas holding company is expected to be set up in the first quarter of next year.

?It (the planned holding company) is still being processed,? she told reporters on Monday, but declined to provide further details.

The ministry last week finally set up a holding company for state-owned controlled mining firms, under which state-owned aluminum producers PT Indonesia Asahan Aluminium (Inalum) has been transformed into a holding company for state-controlled publicly-listed mining firms PT Bukit Asam Tbk, PT Aneka Tambang Tbk, and PT Timah. The government has transferred its entire controlling shares in the three firms to Inalum. The creation of the holding company forms part of consolidation drive to bolster synergy and efficiency, and create a mining group with greater funding capacity to acquire more reserves and finance expansion projects in the future particularly in the downstream sector.

Under the proposed oil and gas holding company, IDX-listed gas distribution firm PT PGN Tbk, in which the government controls a 57 percent stake, will acquire PT Pertamina Gas (Pertagas), the gas distribution of state-owned oil and gas firm PT Pertamina. In turn, the government will transfer its entire shares in PGN to Pertamina, which has been appointed to become the oil and gas holding company.

Rini has recently sent a letter to PGN, requesting the company to immediately hold a shareholders meeting to seek approval for the change in the company?s articles of association, acquisition of Pertagas, and the transfer of government shares in the company to Pertamina. (*)