Pertamina to spend up to Rp 21 trillion for 2008 business operations

State-owned oil and gas company PT Pertamina plans to allocate at least Rp 21 trillion (1US$ = 9,430) from the company's budget this year to finance business operations, President Director has said.

Speaking to reporters in Jakarta on Thursday, Ari Soemarno said that about Rp 13 trillion would be used to finance upstream activities, while the other Rp 8 trillion for the downstream sector.

He said that Pertamina would raise the funds by issuing bonds instead of raising bank loans but it will depend on the audit of the firm's opening balance sheet.

?Currently, (audit of) the opening balance sheet is on the final stage. It is likely to be approved in general shareholders' meeting scheduled for Jan. 30, ?he said.

Pertamina's profits surged to about Rp 23 trillion last year on the back of the significant increase in oil prices.

Asked about the possibility of selling shares to the public through an initial public offering (IPO) in order to raise some of the investment funds, Ari said that such a plan was under consideration. "It is up to the government as the shareholder to decide," he added.(Godang/Bernard)