Pertamina named as holding for SOEs in energy sector

State Minister of State-Owned Enterprises (SOEs) Rini Soemarno said that state-owned oil and gas firm PT Pertamina has been named as the parent of a planned holding company for SOEs engaged in the energy sector including IDX-listed gas distribution firm PT PGN Tbk, in which the government holds a 56.96 percent stake.

?Basically, we?ll use the name of Pertamina (as holding), and PGN will be included in it (the holding company),? she said on Wednesday. She said that Pertamina has been chosen as the holding because the government holds 100 percent shares in the company.

Rini said that her office has discussed the plan with the Ministry of Finance, and will seek the approval of the House of Representatives. ?We?ll issue a government regulation (regarding the setting up of the holding company),? she said.

The government has planned to set up a number of holding companies for state-owned enterprises including in energy sector in a bid to help bolster efficiency and financing capacity. In the case of Pertamina?s gas distribution firm PT Pertamina Gas, for instance, the creation of a holding company would resolve the overlapping of gas pipeline project with PGN.

Kontan reported that Pertamina President Director Dwi Sutjipto welcomes the decision, claiming that over the past year the company has indeed been prepared to become the holding of SOEs engaged in the energy sector. Meanwhile, PGN President Director Hendi Prio Santoso declined to provide much comment, saying that he has yet to be briefed by the minister. (*)