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

Images By : Freepik

Sabtu, 14 September 2024 - 16:56 WIB

Essential Tips for Choosing Personal Health Insurance in the US

Choosing the right health insurance plan in the United States can be a complex task, especially with the variety of options available and the ever-changing landscape of healthcare policy. Here…

Images By : Freepik

Sabtu, 14 September 2024 - 16:53 WIB

The Top 10 Insurance Companies in the US for 2024

In the ever-evolving landscape of insurance, selecting the right company can significantly impact your financial security and peace of mind.

Images By : Freepik

Jumat, 13 September 2024 - 15:37 WIB

Why Airbnb Become Popular in 2024?

Airbnb fosters a more interactive experience between hosts and guests. Through direct messaging, guests can inquire about specific details, negotiate pricing, or clarify expectations, which…

Flag of the United Nations Organization.

Kamis, 15 Agustus 2024 - 14:26 WIB

Modena Officially Becomes a Member of the UN Global Compact

Commited to transforming towards sustainable business practices, Modena the global home appliance established over 60 years ago in Italy, officially became a member of the UN Globe Compact (UNGC)…

Totolink outlet. (Photo: Public Relation of Totolink)

Kamis, 11 Juli 2024 - 22:08 WIB

Totolink Strengthens Commitment to Innovative and Reliable Network Solutions for Indonesia

Marking a strategic step, Totolink Indonesia proudly announces the enhancement of its head office in Jakarta, located at Harco Mangga Dua Blok E No.28, Sawah Besar, Central Jakarta.