Summary of government regulation 31/2003 on Pertamina?s change of status
Thursday, June 19 2003 - 03:44 AM WIB
1. State oil and gas company Petamina which was set up based on Law No. 8/1971 is transformed into a corporation/limited liability company.
2. The mission of the company is to engage in oil and gas business both at home and overseas as well as in other related activities.
3. The objective of the company is to make profit by adopting effective and efficient management principles. (Article 2 chapter 2)
4. Another objective is to contribute in increasing the welfare and the economic activities of the people.
5. The Ministry of Finance and the Ministry of Mineral Resources and Energy will jointly decide on the size of the capital of the corporation. The capital will include all state assets invested in Pertamina and the company?s ownership in subsidiaries and join venture operations. It, however, excludes assets transferred to the BP Migas oil and gas regulatory body.
6. The process of transforming Pertamina into a limited liability company will be conducted in accordance with Law No. 1/1995 on limited liability company and Law No. 12/1998 on corporation, which had been revised by government regulation No. 45/2001.
7. Ministry of Finance will be in charged of this process.
8. The corporation (Pertamina) can carry out an assignment from the government to supply fuel for domestic needs. (Article 6A chapter 5)
9. If Pertamina does carry out such assignment, any compensation will be decided by the Minister of Finance based on inputs from other related ministers.
10. By the time the corporation has been set up, all activities in geothermal sector both which had been conducted solely by Pertamina or through joint venture will be transferred to the new corporation. (Article 7 chapter 5)
11. But after two years time, these activities will be transferred to a subsidiary. (Article 7 chapter 5)
12. By the time the corporation has been set up, all subsidiaries or joint venture companies operating in activities related to oil and gas business will become the subsidiaries and joint venture operations of the new corporation. (Article 8 chapter 5)
13. All Pertamina employees will become the staffs of the new corporation.
14. By the time this government regulation becomes effective, all Pertamina rulings including organization structure, working guidelines and other mechanisms related to Pertamina?s role as long as it does not move against this government regulation are still valid until the new corporation makes revisions.(amoros/godang)