Pertamina to liquidate subsidiaries
Thursday, June 8 2000 - 03:15 AM WIB
State oil and gas company Pertamina will close down its poorly managed subsidiaries as part of its restructuring plan, the company's president Baihaki Hakim was quoted as saying by Detik.com online news service.
The state oil company's president said that Pertamina would also sell a major portion of its stake in well performing subsidiaries to allow the company to focus its operation in oil and gas exploration and production activities.
According to Baihaki, about 30 to 40 percent of the state oil company's subsidiaries were categorized as unhealthy and should be dissolved because it would be difficult to improve their business performances. About 25 percent of the subsidiaries were categorized as very healthy, he added.
He said Pertamina would sell a large portion of its stake in the healthy companies either through a direct placement or initial public offering to slim its massive operations. "The measures are needed to bring Pertamina at the same level with the world's oil giants," he said. (*)