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

By : Herry Barus And Aldo Bella Putra | Friday, December 08 2017 - 20:00 IWST

Menteri BUMN Rini Soemarno (Hariyanto/ INDUSTRY.co.id)
Menteri BUMN Rini Soemarno (Hariyanto/ INDUSTRY.co.id)

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.

News Comment

Today's Industry

Beras (Foto/Rizki Meirino)

Rabu, 21 Februari 2024 - 08:43 WIB

Gov’t to Continue Disbursing Rice Assistance

President Joko “Jokowi” Widodo has ensured that the Government will continue rolling out the rice assistance program for low-income families. The President made the statement when handing…

Ilustrasi pabrik beras. (Foto: DetikFood)

Rabu, 21 Februari 2024 - 08:40 WIB

Bapanas Head Ensures Availability of Rice Stock Ahead of Ramadan

The National Food Agency (Bapanas) has ensured the availability of rice for the fasting month of Ramadan and Eid al-Fitr 1445 Hijri/2024 CE. “We believe that there is enough rice for the fasting…

Receives Chairman of Jababeka (KIJA), Menpora Dito Ready to Support the Development of Sports SEZs

Rabu, 21 Februari 2024 - 08:23 WIB

Receives Chairman of Jababeka (KIJA), Menpora Dito Ready to Support the Development of Sports SEZs

Chairman of PT Jababeka Tbk (KIJA), Setyono Djuandi Darmono met the Minister of Youth and Sports of the Republic of Indonesia (Menpora RI) Dito Ariotedjo at the Kemenpora RI Office, Senayan,…

The Indonesian Embassy in Cairo Receives Aid for Palestine

Senin, 19 Februari 2024 - 17:39 WIB

The Indonesian Embassy in Cairo Receives Aid for Palestine

The Indonesian Embassy in Cairo welcomes the Radjiman Wedyodiningrat Warship (RJW-992) which arrived at the Al Arish Port, North Sinai Province of Egypt at 8.00 A.M. Cairo local time (13/02).…

Celebrating 65 Years of Indonesia - Cambodia Relations: Indonesian Embassy in Phnom Penh Organizes Roundtable Dialogue

Senin, 19 Februari 2024 - 17:31 WIB

Celebrating 65 Years of Indonesia - Cambodia Relations: Indonesian Embassy in Phnom Penh Organizes Roundtable Dialogue

Phnom Penh, Cambodia - The Indonesian Embassy in Phnom Penh organised a Roundtable Dialogue celebrating Indonesia-Cambodia Relations for 65 Years at the embassy (13/2). The event was attended…