Pertamina urged to revalue its assets

State oil and gas firm Pertamina needs to revalue its assets thoroughly so it could have better knowledge about its capability to become a limited liability company in accordance with existing oil and gas law, the company?s financial director Ainun Naim said on Thursday.

With complete picture of Pertamina?s viability, the government would also find it easier to decide the amount of capital it will have to put into the company, Ainun told reporters.

?All this is important for Pertamina to operate as a limited liability, and make itself ready to enter the capital market,? Ainun said.

?Moreover, Pertamina should make clear its status as a business entity and a government agent because such dualism could have negative impact on its performance,? he added.

Pertamina, under existing oil and gas law which came into force late last year, is making preparations to fully operate as a limited liability company in late 2003.

The law outlines that Pertamina will have to end within two years its decades long monopoly over upstream and downstream businesses in the country?s oil and gas sector.

In accordance with the law, the government is making preparations to form the so-called implementing body and executing body which will take over Pertamina?s monopolistic tasks.

Some foreign firms had asked the government to sell its assets in Pertamina like oil refineries and depots after the oil and gas law went into effect late last year.

Presently, Pertamina operates nine oil refineries in Pangkalan Brandan (North Sumatra), Dumai (Central Sumatra), Sungai Pakning (Central Sumatra), Musi (South Sumatra), Balikpapan (East Kalimantan), Balongan (West Java), Cilacap (Central Java), Cepu (Central Java), and Kasim (Papua). (Godang)