PGN plans to enter downstream industry

In addition to expanding its distribution networks to new areas, state owned gas distributor PT Perusahaan Gas Negara (PGN) also plans to enter gas processing (downstream) industry as part of the company?s business expansion plan, Kontan reported on Thursday.

PGN's president director Hendi Prio Santoso said in Jakarta on Wednesday that the company had about Rp 11.2 trillion in cash which could be used to partly finance the expansion plan. ?We will continue to explore new areas and new business in our expansion plan,? he said.

The company expects to expand their business to downstream this year, he said

Hendi said that the company would also improve the company?s financial management to reduce losses resulting from the fluctuation of rupiah against the world?s major currencies. For this purpose, the company would use a functional currency system this year to reduce such a loss which reached Rp 368 billion last year. (*)