“There was no problem in the process of establishing holdings. We only wait for the administrative work, which needs time,” said Rini in Jakarta on Thursday night as quoted by Antara.

She said state-owned energy company Pertamina would act as the leading company of the oil and gas holding with members that include state-owned gas distribution firm Perusahaan Gas Negara (PGN).

Meanwhile, state-owned aluminum firm PT Indonesia Asahan Aluminium (Inalum) will act as the leading firm in the mining holding with members that include coal mining firm PT Bukit Asam, tin mining firm PT Timah and diversified mining company PT Aneka Tambang.

She said that many SOEs had become more independent because although they received capital injection from the government, they also paid dividends. “The [SOEs] had transferred [...] Rp 113 trillion (US$8.37 billion) in dividends to the state treasury from 2015, 2016 to 2017,” said Rini.

She said the establishment of the holdings would reduce costs and make the SOEs more operationally efficient.

“Currently, each company has to make an investment separately. With synergy through the holding, heavy equipment can be jointly used by all companies, helping them to reduce production costs." (bbn)

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