Pertamina transfers non-core assets to PPA

State-owned oil and gas company PT Pertamina has signed agreement to transfer the company?s non-core assets to state owned asset management company PT Perusahaan Pengelolaan Aset (PPA) as part of its business consolidation program.

Pertamina?s President Director Karen Agustiawan said in Jakarta on Tuesday that the assets which would be transferred to PT PPA include the state oil and gas company?s 99.99 percent stake in PT Pelita Air Service, 99.98 percent stake in PT Patra Jasa, 99.97 percent in PT Patra Dok Dumai, 95 percent stake in PT Usayana, 10.38 percent in PT Seamless Pipe Indonesia Jaya.

Pertamina would also transfer its property assets in Jakarta and Tangerang.

Karen said that the transfer of the non-core assets to PT PPA was part of the company?s business program to focus on oil, gas activities and biofuel.

Meanwhile, PPA?s president director Boyke Mukijat said that PPA would first assess all the assets before taking a restructuring program.

He said that PT PPA would be given a year to improve the value the assets transferred by Pertamina to the asset management company. ?After that it will be up to Pertamina to decide whether they would be sold or would be retained,? he added. (godang/bernard)