Pertamina opposes any plan to sell its profitable subsidiaries

State owned oil and gas company Pertamina will oppose any plan to privatize its profitable subsidiaries because such companies give a significant contribution to the company?s financial performance, Bisnis Indonesia reported on Thursday.

Pertamina?s spokesman Ridwan Nyak Baik said in Jakarta on Wednesday that the company?s subsidiaries such as PT Pertamina Tongkang and PT Pelita Air Service had given a positive contribution to the oil and gas company?s consolidated profits.

Pertamina Tongkang, for example, booked Rp 19 billion in profit in the first semester of last year while Pelita Air Service reported a profit of Rp 16 billion during the same period, much higher that the average profits of other scheduled airline companies.

Ridwan acknowledged that the new oil and gas law required the company to focus on its core business in oil and gas related activities. "If the subsidiaries give a significant contribution to its parent company, why they should be sold," he said.

He, however, said that if the government insisted on the separation of the non-core business activities, there should be a deep assessment on the plan. "Pertamina will agree to release them as long as it is fair. It is quite unfair if we are forced to release non-core subsidiaries, while on the other hand, foreign oil companies are allowed to carry out such activities," he added.

On the first semester of last year, Pertamina?s several other subsidiaries also booked profits. PT Patra Jasa reported a profit of Rp 1.67 billion, PT Patra Dok Dumai (Rp 1.46 billion), PT Elnusa Harapan (Rp 1.51 billion, PT RSPP (Rp 42.79 billion) and PT Elnusa (Rp 21.94 billion). (*)