Ministry of SOE: Integration of PGN and Pertagas Not Up to 2.5 Billion Dollar

INDUSTRY.co.id - Jakarta - PT Perusahaan Gas Negara Tbk (PGN) and PT Pertamina Gas (Pertagas) are reportedly going to integrate, as a follow up to the formation of Holding of State-Owned Enterprises (BUMN) of Oil and Gas.

This was conveyed directly by Deputy Minister of Mining Business, Strategic Industries, and Media Ministry of SOE, Fajar Harry Sampurno, the formation of oil and gas holding was actually completed with the entry of PGN to Pertamina.

"There is still some acquisition process that will be done again," said Fajar on Monday (4/6) yesterday at the Ministry of SOEs, Jakarta.

Meanwhile, the funds to be issued for the two companies' integration proaes, Fajar stated that they still do not know, because the more PGN has the right to know the amount of funding.

However, Fajar said the cost figures for the integration of the two companies are not more than USD 2.5 billion.

"There will be no extraordinary general meeting of shareholders (EGM), because the amount may not be that much, the transaction is not up to USD 2.5 billion," Fajar added.

The business integration of these two SOEs is to encourage national economy and energy security through the management of connected gas infrastructure from western Indonesia to eastern Indonesia.