Oil and Gas Holding Said Pertamina Modes PGN Acquisitions

By : Ahmad Fadli Dan Aldo Bella Putra | Monday, March 26 2018 - 18:30 IWST

INDUSTRY.co.id - Former Secretary General of SOE Ministry Said Didu said that oil and gas holding is only a mode of acquisition of PT Pertamina (Persero) to PT Perusahaan Gas Negara (Persero) Tbk.

"Actually this holding is too big, it's an acquisition," he said in a discussion titled "Observing the Formation of Holding BUMN Migas" in Jakarta, Monday (26/3/2018).

Nevertheless, according to Said, oil and gas holding is really important to be formed because gas should be utilized as much as possible for the benefit of the people. He explained as the two state-owned companies that manage natural gas in Indonesia, the position of the two state-owned companies are difficult to get the same treatment because PGN shares are also owned by the public.

It caused government intervention to limited gas control because there are companies that are not 100 percent of SOEs.

"So better combined to be assigned to Pertamina only," he said.

Said said the holding of both BUMN oil and gas is also needed for the utilization of gas for the national interest can be done thoroughly.

The reason is that PGN controls gas distribution while Pertamina owns gas field but does not control the distribution network.

"This merger makes it easier to utilize gas for the country's interest, so this plan is okay," he said.

With the formation of holding, Said assesses the control of gas through one door will make the country into a total role.

"I hope that gas exploration and Pertamina's involvement in gas will be higher, once PGN is used as a trader by other parties, with government-controlled Pertamina, the government has power in the fields, distribution to traders,

As known by President Jokowi has authorized the formation of holding BUMN Migas with the signing of Government Regulation No. 6 of 2018 on the addition of State Capital Investment in the Company's capital of PT Persero Pertamina, in March 2018.

Through this regulation, the government increased state equity in the form of transfer of 13,809,038,755 series B shares owned by the government to PT PGN Tbk to PT Pertamina (Persero).