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Jakarta Post

PGN delays shares handover, pending Jokowi's approval

  • News Desk

    The Jakarta Post

Jakarta   /   Fri, January 26, 2018   /   10:49 am
PGN delays shares handover, pending Jokowi's approval A technician of state-owned gas company PGN inspects gas pipelines at the company’s Pasar IX metering and regulating station (MRS) in Medan, North Sumatra, in June 2017. (Antara/Irsan Mulyadi)

State-owned gas distributor PT Perusahaan Gas Negara (PGN) delayed the plan to handover 57 percent of their shares to state-owned energy company Pertamina, pending the issuance of a government regulation (PP) on the establishment of an oil and gas holding firm.

“Today is not a share handover; today is an approval of the revision of the internal regulation [to accommodate the shares handover],” said the State-Owned Enterprises Ministry’s deputy for mining, strategic industry and media affairs Fajar Harry Sampurno as reported by kompas.com.

The planned handover of PGN shares through the inbreng mechanism to Pertamina is a step toward the establishment of the oil and gas holding firm. Under the plan, Pertamina will be in charge of the holding, while PGN will become a subsidiary.

The share handover was delayed until the signing of the PP by President Joko “Jokowi” Widodo, Fajar said, adding that State-Owned Enterprises Minister Rini Soemarno and Finance Minister Sri Mulyani Indrawati had already signed the PP draft.

Fajar said PGN would hold another meeting to discuss the asset handover to Pertamina soon after the President issued the regulation.

Meanwhile, PGN corporate secretary Rachmat Hutama said 77.8 percent of shareholders agreed to handover the shares during the extraordinary shareholders meeting in Jakarta on Wednesday.

Rachmat, however, said shares handover would automatically be canceled if within 60 days, President Jokowi had not issued the the PP.

During the meeting, shareholders agreed to affirm the replacement of PGN business strategy and development lead Giginh Laksono, who has a new position in Pertamina. (bbn)