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)
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)