The Jakarta Post
The government has transferred its shares in state-owned gas distributor PT Perusahaan Gas Negara (PGN) worth Rp 38.13 trillion (US$2.77 billion) to state-owned energy company Pertamina, as a significant step toward the establishment of a state-owned oil and gas holding company.
The transfer of the shares was signed by State-Owned Enterprises Minister Rini Soemarno in Jakarta on Wednesday.
“The figure is not the total value of PGN shares. It is only shares owned by the government,” said ministry spokesman Harry Fajar Sampurno as quoted by tempo.co.id.
The Series B of PGN shares transferred to Pertamina, which represents 56.96 percent of the total PGN shares, marked the establishment of a gas and oil holding firm.
Harry said the integration of PGN and Pertamina would improve cost efficiency through the elimination of overlapping infrastructure owned by the companies because they had similar businesses.
He believed the move would strengthen the financial performance of both companies. “It will strengthen the PGN's financial structure and would increase its contribution to state revenue in the form of taxes and dividends.”
He said PGN would hold a shareholders meeting on April 26 to reaffirm the establishment of the holding firm.
Harry assured that there would be no reshuffle of Pertamina’s board of directors following the establishment of the holding company. (bbn)