Oil, gas holding company to boost efficiency: Minister

Jakarta (ANTARA News) - Indonesias State Enterprises Minister Rini Soemarno said that the establishment of state-owned oil and gas holding company is aimed at boosting efficiency and encouraging energy self-sufficiency.

"The activities would run as it is, but it would be more efficient," Soemarno stated here on Thursday.

The oil and gas holding company, which would involve PT Pertamina (Persero) and PT Perusahaan Gas Negara (Persero), is expected to strengthen the governments role in the sector.

"We should have a strong state-owned firm that would be efficient in investment to become a self-reliant country in terms of energy," she added.

Therefore, she continued that the oil and gas holding company, which is planned to be established in the first quarter of 2018, is expected to bring benefit to the country.

"We hope that with improved efficiency, we can have better income, better profit, better tax payment, as well as dividends," Soemarno noted.

The government is finalizing the process to create the holding company, and the draft of the government regulation on oil and gas holding company has passed its harmonization process.

In its short term, the holding firm would have the strategy of quick wins by integrating Pertamina and PGN, which would be followed by synergy in operation and commercial for medium and long terms.

The holding company would be led by state-owned energy firm PT Pertamina, with 100 percent of shares owned by the government, while PGN would become a subsidiary after the transfer of 57 percent of its shares.

Source: ANTARA News

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