PGN to become subsidiary of Pertamina

State Minister of State-Owned Enterprises Rini Soemarno said that her office has completed the study for the planned holding company of state-owned enterprises (SOEs) engaged in the energy sector, under which state-controlled gas distribution firm PT Perusahaan Gas Negara (PGN) Tbk will become a subsidiary of state-owned oil and gas firm PT Pertamina.

Rini was quoted by Bisnis Indonesia a saying that the Ministry of Finance is currently reviewing the result of the study.

She said that under the plan, IDX-listed PGN will launch rights issue to be subscribed by Pertamina. Meanwhile, gas distribution company PT Pertamina Gas, a subsidiary of Pertamina, will be injected into PGN.

Rini said that no final decision has been made yet regarding the planned holding company. (*)