Pertamina won?t launch IPO for subsidiaries

By Godang Sitompul

State-owned oil and gas firm Pertamina has no plans to launch initial public offering (IPO) for its subsidiaries in the near future.

Pertamina VP for Corporate Communications, Ali Mundakir told reporters on Thursday that there has been a study conducted to look into the possibility of launching IPO for several of the company?s subsidiaries, but the results show that such a strategy would ?not be good? for them.

The comment comes following recent statement by State Minister of State Owned Enterprises Dahlan Iskan that there?s a plan to privatize Pertamina?s subsidiaries such as PT Pertagas and PT Pertamina Drilling Service Indonesia via IPO. ?Those ready for IPO includes Pertagas and Pertamina Drilling,? he said.

Ali said that Pertamina and its subsidiaries are already being operated like a public company as the financial report is audited and quite transparent.

?IPO is for raising capital (from public investors). But as long as Pertamina can handle it, the IPO strategy would not be implemented,? Ali said.

Editing by Reiner Simanjuntak