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Jakarta Post

PGN to disburse $1.2b for Pertagas acquisition

  • Stefanno Reinard Sulaiman

    The Jakarta Post

Jakarta   /   Thu, July 5, 2018   /   07:41 am
PGN to disburse $1.2b for Pertagas acquisition State-owned gas company Perusahaan Gas Negara (PGN) workers check a facility owned by PT Indonesia Power in Tambak Lorok, Semarang, Central Java. (JP/Suherdjoko)

Newly established state-owned gas subholding company PT Perusahaan Gas Negara (PGN), which acquired 51 percent shares in Pertagas, a subsidiary of state energy giant Pertamina, on Friday must disburse US$1.2 billion, according to a public auditor assigned to valuating the shares.

The integration of PGN and Pertagas has been dubbed as the final phase for Pertamina to fully become an oil and gas holding company.

PGN also acquired Pertagas’s subsidiary, PT Pertagas Niaga (PTGN), which operates in gas distribution, the same business run by PGN, according to public auditor Ruky, Safrudin and Partners.

Meanwhile, PGN finance director Said Riza Pahlevi said on Thursday that the acquisition funds would come from internal and external sources.

Previously, the State-Owned Enterprise (SOE) Ministry's mining, strategic industries and media affairs undersecretary, Fajar Harry Sampurno, said the agreement on the valuation must be announced by PGN because the firm was a public company.

“It has finished [integration]. […]  There is a possibility to change the scheme of integration within two to three years,” Fajar said.

Under the current scheme, PGN bought Pertagas’ shares from Pertamina. PGN currently holds 51 percent of Pertagas’ shares.

PGN corporate secretary Rachmat Hutama said in a statement on Friday that according to the agreement, the transaction would be finalized in 90 days from Friday.

 Pertamina corporate communication officer Adiatma Sardjito expected the integration would help the subholding company increase efficiency in managing the gas sector. (bbn)