PP Holding Migas Waits for Signature of President Jokowi

By : Hariyanto And Aldo Bella Putra | Saturday, February 03 2018 - 17:00 IWST

Holding Migas Pertamina - PGN (dok IndoPetroNews)
Holding Migas Pertamina - PGN (dok IndoPetroNews)

INDUSTRY.co.id - Jakarta - The Government Regulation (RPP) Holding BUMN Migas has been signed by all related ministers and is now waiting for the signature of President Joko Widodo.

"It has been signed by all relevant ministers and submitted to the President through the State Secretariat, after the signing of the President, the PP Holding of BUMN Migas will be issued," said Muhammad Fajar Sampurno, Deputy of Mining Business, Strategic Industries and Media, when contacted by media crews in Jakarta on Thursday 2/2/2018)

Harry explained that after the official regulation issued, the legal aspect of the formation of holding was only followed by the signing of the deed of the transfer of government shares in PT Perusahaan Gas Negara (PGN) to Pertamina. PGN will become a subsidiary of Pertamina and other subsidiaries.

"But from the corporate aspect after the PP will have to be made Minister of Finance Decision on the value of the transfer," said Harry.

Previously, research institute Wood Mackenzie said, there are a number of benefits that will be obtained by Pertamina if the formation of oil and gas holding is realized, among them, Pertamina can utilize PGN's customer base to expand the company's marketing reach.

At the same time it is expected to avoid Pertamina from the risk of excess Liquid Nature Gas (LNG) contract.

Known, Pertamina has since 2014 signed a contract of import of liquid natural gas (LNG) of 1.5 million tons per year from Cheniere Corpus Christi, a US company.

LNG purchase contract is made because it is estimated that Indonesia needs import gas starting 2019.

In the gas balance prepared by the Ministry of Energy and Mineral Resources, Indonesia needs 1.777 billion thermal units per day (bbtud) of gas imports in 2019, 2,263 bbtud in 2020, 2,226 bbtud in 2021, 1,902 bbtud in 2022, 1,920 bbtud in 2023, 2,374 bbtud in 2024, and 2,304 bbtud in 2025.

However, Pertamina's gas receiving infrastructure is currently insufficient to accommodate and distribute the gas.

If not immediately anticipated, Pertamina is at risk of losses due to lack of adequate gas infrastructure, whereas contracted gas must be absorbed starting 2019.

"This merger will provide access (Pertamina) to PGN's major industrial customers who can ease the risk of oversupply," said Wood Mackenzie research.

News Comment

Today's Industry

Bank Central Asia (Foto Ist)

Jumat, 23 Februari 2018 - 23:00 WIB

This morning, JCI Opened up to 6608 position

Jakarta - Jakarta Composite Stock Price Index (BEI) opened at 6.608 in the first session of trading Friday (23/02/2018), 0.23% higher or 15 points compared to the position at the end of trading…

BRIT Awards 2018 at The O2 London. (Source: TVM)

Jumat, 23 Februari 2018 - 22:14 WIB

Complete List of BRIT Awards 2018 Winners, Congratulations!

The annual music awards event by the British Phonographic Industry, BRIT Awards 2018 was successfully held on Wednesday (21/2) at The O2 Arena, London. Almost all the famous musicians present…

PT Unilever Indonesia (Foto Dok Industry.co.id)

Jumat, 23 Februari 2018 - 22:00 WIB

Today, JCI Moves Predicted Varies at 6,562-6,628

Jakarta - Movement Composite Stock Price Index (CSPI) is predicted to vary in trading Friday (23/02/2018) after a decline in trading on the previous day. The range of movement is in position…

Hino Truck Products

Jumat, 23 Februari 2018 - 21:53 WIB

Hino Dutro Light Truck Sales Up 10 Percent By 2017

PT Hino Motors Sales Indonesia (HMSI) recorded positive results for the category of light duty trucks or light trucks. Hino Dutro, launched in 2002, recorded an increase in sales every year…

Hino Bus Products

Jumat, 23 Februari 2018 - 21:51 WIB

Hino Bus Dominates Bus Market With 74 Percent Total Market Share

PT Hino Motors Sales Indonesia (HMSI) managed to achieve good with positive achievements for sales in 2017 for the Bus market.