Minister Rini Ensures Holding of Oil and Gas State-Owned Enterprises Established Quarter 1-2018

INDUSTRY.co.id - Jakarta - SOE Minister Rini Soemarno targets the formation of Oil and Gas Enterprise Holdings to be realized in the first quarter of 2018.

"After Holding State-Owned Fertilizer Industry, Holding State-owned Cement Industry and Holding State-Owned Mining Industry, in the near future will soon be realized Holding BUMN Migas," said Rini Soemarno, in a press release in Jakarta, Thursday (7/12/2017)

According to Rini, the establishment of oil and gas holding is done to improve the competitiveness of SOEs in order to face the challenges of competitiveness in the oil and gas sector.

Gas demand is projected to fivefold by 2050, reliance on gas imports, relatively high gas prices and imbalances of gas sources are expected to be handled by the Government in the future.

With the combination of fuel and gas balance is expected to be better energy security.

Meanwhile, Deputy for Energy, Logistic, Regional and Tourism Business Division of Edwin Hidayat Abdullah said that the scheme of Holding BUMN Migas consists of PT Pertamina (Persero) as holding holding with 100% ownership owned by the state which will control PT Perusahaan Gas Negara (Persero) Tbk (PGN) as a holding subsidiary through a 57 percent share ownership transfer.

Implementation strategy of oil and gas short-term holding is "quick wins" by integrating Pertamina and PGN followed by operational and commercial synergy in the medium and long term.

The holding purpose of BUMN Migas is supposed to provide added value to the parent company, Pertamina and also to the new subsidiary, PGN.

"With the holding of state-owned oil and Gas Company, Pertamina is expected to expand the gas reach to the public and business world with competitive price," said Edwin.

Going forward, PGN will become Pertamina's hand in carrying out gas business activities from upstream to downstream, including natural gas transmission and distribution.

In addition, PGN as a holding subsidiary of Pertamina, it is expected that the holding will have a stronger balance sheet structure, thereby expediting Pertamina's task as an Energy SOE to realize the government's efforts in energy security program.

The formation process of holding BUMN Migas is still in process. The draft Government Regulation (RPP) on oil and gas holding has been through harmonization process.

The joint study of the Ministry of SOE and Ministry of Finance concerning the holding has also been updated and is in the process of final alignment.

"It is expected that in the first quarter of 2018 all the holding process of BUMN Migas will be completed," he said.