TEMPO.CO, Jakarta-The State-Owned Enterprises Ministry announced that it has completed the commercial studies on the establishment of a holding for state oil and gas firms. The study, which was done together with the Finance Ministry, has been submitted to Justice and Human Rights Ministry for the latter to use as a reference to draft a government regulation.
"We have only completed the Pertamina-PGN scheme," SOE Minister Rini Soemarno said here on Monday, May 9.
The SOE Ministry and the Finance Ministry are still completing the commercial studies for five other holding companies for SOEs engaged in the fields of mining, housing, banking, toll roads, as well as construction and engineering. Rini said that the bill regulating the SOE holding is targeted for completion before July 2016.
For the oil and gas sector, state gas company PT PGN will become a subsidiary of PT Pertamina. Rini requires PGN to first purchase Pertamina's gas subsidiary, Pertamina Gas. This is to prevent a business overlap between the companies' gas operations.
PGN can source the acquisition funds through a rights-offering, Rini said, since PGN is a public company that has more flexibility to hold a rights issuance.
Once Pertagas is acquired by PGN, the next scheme is to merge PGN as a subsidiary of Pertamina. All of the government's stake in PGN will be handed over to Pertamina.
I Gusti Nyoman Wiratmaja, director general of oil and gas at the Energy and Mineral Resources Ministry, said that having an oil and gas holding will help accelerate the sector's infrastructure projects.
By 2030, the Ministry of Energy aims for Indonesia to have gas infrastructure worth US$24.8 billion. The investment comprises of the US$12 billion-worth of pipe installations, US$1.3 billion-worth of liquefaction facilities, US$1.93 billion worth of gas refueling stations, US$6.1 billion worth of regasification facilities, US$2.2 billion city gas and infrastructure, and US$0.4 billion worth of LPG infrastructure.
ROBBY IRFANY
