PGN’s reauditing completed

International public accounting and auditing firm Ernest and Young has completed the reauditing of the state-owned gas utility company PT Perusahaan Gas Negara (PGN)’s 2001 financial report, Bisnis Indonesia reported on Saturday.

“We will submit the financial report (2001) to Capital Market’s supervisory body Bapepam on November 3 (Monday), said PGN’s president director W.M.P. Simanjuntak said in Jakarta after attending a hearing with House of Representatives’ Commission IX on Friday.

The same report was already audited by Arthur Andersen and the audit result was not accepted due to the black listing of Arthur Andersen following its alleged involvement in Enron case in the U.S.

The audit was repeated in order to fulfill the requirement as laid down under the Regulation S and 144A. It will strengthen PGN ‘s position during planned initial public offering (IPO) process.

Because of this re-auditing process, the PGN’s IPO was postponed to December 12, 2003. Initially the IPO was scheduled to be launched on November 20.

PGN has decided to list its shares only on the Jakarta Stock Exchange and Surabaya Stock Exchange and postponed the plan to list it on the London and Singapore stock exchanges, Simanjuntak said.

The gas utility company plans to raise up to Rp 3.6 trillion or about US$400 million from the sales of its 30 percent stake. If the entire 30 stake is sold out during the IPO, PGN may sell another 9 percent under its green shoe and red shoe options.

PGN needs huge amount of investment to complete several gas pipeline projects like Grissik-Pagar Dewa in South Sumatra, Duri (Riau)-Belawan (North Sumatra) pipelines and another pipeline from Riau to Singapore. (*)