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JAKARTA. Pertamina has highlighted the importance of merging state-owned company Perusahaan Gas Negara ( PGN ) and the state-owned energy giant’s subsidiary, Pertamina Gas (Pertagas), claiming that doing so may save at least US$1.6 billion in investment.
The merger is part of the government’s plan to establish a holding company for state-owned energy firms. Pertamina and PGN established a joint team in January 2016 with the main task of analyzing the fields of synergy in the gas business.
“The synergy leads to efficiency in capital expenditure [capex]. Now, it is becoming clearer on who will handle the operations and who will handle the distribution,” said Pertamina finance director Arief Budiman after its annual shareholders meeting on Tuesday in Jakarta.
According to the plan, Pertamina will act as the holding company, while PGN the subsidiary. However, the government must first transfer its shares in PGN to Pertamina under a government regulation (PP) as the legal basis.
State-Owned Enterprises Minister Rini Soemarno said recently that the government regulation for the shares transfer was on the desk of law and human rights minister. She estimated the draft would be signed next month.
“The holding company will bring many benefits. For customers, the price of gas will decrease,” Pertamina president director Dwi Sutjipto said. (Anton Hermansyah)
