House Suggests Pertamina, PLN Go Public

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  • Pertamina dan PLN Disarankan Go Public

    Pertamina dan PLN Disarankan Go Public

    TEMPO.CO, Jakarta – House of Representative (DPR) member suggests two SOEs PT Pertamina (Persero) and PT PLN (Persero) to immediately list their shares on the Indonesia Stock Exchange (IDX). Effendi Simbolon, member of DPR Energy Committee, said is necessary to allow transparency in both companies subsidy budget management, "so that the public will have easier access to control [budget use]," he said in Jakarta last weekend.

    Effendi said that Pertamina's subsidized fuel management is not transparent, whereas the government needs to know how much it costs to process domestic crude oil as well as the cost of importing fuel for domestic consumption. With more transparency, the government will be able to make appropriate calculations for subsidized fuel price hikes.

    Harry Azhar Aziz, deputy of DPR finance committee, requested the discourse for the government to let go of their stake in Pertamina be continued. According to Harry, if the public can have some ownership in Pertamina, there would be more eyes controlling the oil company's management.

    PLN Secretary Adi Supriono denied allegations of lack of transparency. The power company, he said, has been working with a public audito. In addition, the Supreme Audit Agency (BPK) routinely audits the company's finances. "If you wish to check on our efficiency, pit us with electric companies in other countries," he said.

    Adi asked the government and the DPR to review the IPO suggestion. Adi referred to gas company PGN (Persero) Tbk, which has gone public on IDX, saying that PGN's is profit oriented. "PLN is associated with the lives of many people, so our orientation is not only for profit, but for public service as well," he said.

    However, Adi said, the government as shareholder has every authority for determining whether PLN should hold an IPO. PLN as the executor of the company can only follow the will of its owner.