Pertamina injects assets to three subsidiaries

State-owned oil and gas company PT Pertamina transferred some land and building assets into three subsidiaries including PT Pertamina Geothermal Energy (PGE), PT Pertamina Gas (Pertagas), and PT Pertamina Drilling Service Indonesia (DSI) in a bid to boost the equity capital of the three units.

Senior officials of Pertamina and the three subsidiaries signed the asset transfer agreement on Monday in Jakarta.

Pertamina's director for planning and investment risk Ferederick Siahaan said the move was part of the efforts to push the three subsidiaries to go public.

?With larger size of capital, people will see the growth capacity of the subsidiaries. The hope is higher growth and improvement in the capital structure and balance (sheet) of the subsidiaries,? Ferederick said, adding that the challenge now as how to optimize the higher capital base of the companies.

He said that the greater capital base will increase funding capacity of the subsidiaries to help finance future expansion programs.

PGE president director Abadi Poernomo said that the challenge was how to increase the return on assets. (Bernard)