Holding Oil and Gas Enhances SOEs to Become a Global Player

By : Herry Barus And Aldo Bella Putra | Tuesday, March 27 2018 - 16:00 IWST

Pertamina (Foto: Ist)
Pertamina (Foto: Ist)

INDUSTRY.co.id - Jakarta -  Executive Director of Management Institute Faculty of Economics and Business University of Indonesia Toto Pranoto assess the formation of oil and gas holding is expected to encourage SOE companies to become global players.

"Holding oil and gas is an alternative to encourage SOEs, in this case Pertamina, can increase as a global player," he said in a discussion titled "Observing the Formation of Holding BUMN Migas" in Jakarta, Monday (26/3/2018).

In the formation of holding state-owned oil and gas, PT Pertamina (Persero) will become holding while PT Perusahaan Gas Negara (Persero) Tbk becomes a subsidiary of Pertamina.

Toto said that compared to Malaysian oil and Gas Company Petronas, Pertamina has been declining in the last decade. In fact, once Petronas once studied at Pertamina.

In terms of company assets, for example, Petronas was able to grow up to 15.9 percent in the first half of 2017, well beyond Pertamina's only 4.9 percent growth.

Petronas revenue also called more moncer with growth in 2016 to 22 percent while Pertamina only 19 percent.

"Because Petronas may be like Pertamina in the 80s in terms of organization, maybe because they are regulators and hold the business as a whole, different from Pertamina now," he said.

Toto said that when Petronas can expand its business to the whole world, Pertamina can expand to certain networks only.

"It could be because of the asset and financial strength, how can it be robust and increase the 'value' Yes ​​by managing oil and gas as a whole.That is why this oil and gas holding can be an alternative to how Pertamina as a global player can increase," he said.

Furthermore, Toto argues that another problem that makes the competitiveness of Indonesian SOEs weak is slow decision making.

This is in contrast to state-owned enterprises such as Temasek (Singapore) and Khazanah (Malaysia) that move independently in a corporation without intervention.

"We hope if the oil and gas holding can be established well, hopefully we can have a more agile state," he concluded. (Ant)

News Comment

Today's Industry

GoFood, the Most Used Online Food Delivery Application. (Photo: Sindonews)

Selasa, 05 Juli 2022 - 11:56 WIB

JAKPAT Research: GoFood, the Most Used Online Food Delivery Application

Although GoFood is not the online food delivery app that gives promo and discount the most, GoFoodstill maintains its market leadership as the most used Online Food Delivery (OFD) application.…

Collaboration and innovation is a common thread of various Business Twenty (B20) forums as an important part of G20 activities in 2022. (Foto: Liputan6.com)

Selasa, 21 Juni 2022 - 17:53 WIB

Inter Sectors Collaboration in Strengthening SMEs, Key for Post-Pandemic Recovery Acceleration

Indonesia owns an important role to support the world’s policy that prioritize various parties collaborations as the key to realize an inclusive world economy, included Small Middle Enterprises…

Collaboration and innovation is a common thread of various Business Twenty (B20) forums as an important part of G20 activities in 2022. (Foto: Liputan6.com)

Senin, 06 Juni 2022 - 21:35 WIB

Collaboration and Innovation, Key to support Inclusive Economy Growth

Collaboration and innovation is a common thread of various Business Twenty (B20) forums. This is an important part of G20 activities in 2022. That matters are also going to become a main key…

NORD-DuoDrive.jpg: The innovative and patented DuoDrive geared motor reaches outstanding system efficiency Image: NORD DRIVESYSTEMS

Selasa, 17 Mei 2022 - 14:00 WIB

NORD DRIVESYSTEMS at LogiMAT in Stuttgart From 31st May to 2nd June 2022 NORD will present innovative drive solutions for intralogistics

The specialist LogiMAT exhibition in Stuttgart offers as comprehensive overview of the intralogistics and process management market. As one of the market leaders for drive technology, NORD presents…

President Jokowi attends the meeting between ASEAN leaders and American entrepreneurs at Intercontinental the Willard Hotel, Washington DC, Thursday (05/12). Photo by: Laily Rachev

Selasa, 17 Mei 2022 - 13:00 WIB

President Jokowi Invites US CEOs to Boost Cooperation with Indonesia

President Joko “Jokowi” Widodo has invited company CEOs in the United States to boost cooperation with ASEAN countries, particularly Indonesia.