Pertamina pledges to continue to dominate local oil industry
Monday, November 13 2000 - 04:30 AM WIB
State oil and gas company Pertamina is expected to continue dominance in oil and gas industry in the future despite the planned removal of its monopoly, the company's president Baihaki Hakim said in Jakarta late last week.
"We are ready to carry out a privatization program to support our financial resources before entering the free market era," he was quoted as saying by Satunet.Com. He said that under the new oil and gas law which will soon be deliberated by the House of Representatives, the exclusive rights now being held by Pertamina in oil and exploration, production and distribution would be lifted.
To anticipate the free market era, the company would carry out a major restructuring program, he said. "In my mind, Pertamina will operate two subsidiaries to respectively operate the upstream and downstream industries," he added.
He said that the two subsidiaries would be privatized either through an initial public offering or a direct placement in a bid to raise investment funds during the free market era. (*)