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Pertamina vows to maintain control if assets sold
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Pertamina workers are transported in a personnel transfer basket from a ship to the company’s oil rig off the coast of Madura Island in East Java. (JP/Wahyoe Boediwardhana)
W
hile the government is allowing state-owned energy holding company Pertamina to take corporate action to maintain its finance performance, including sharing its assets, the company vowed that it will still control those projects.
Pertamina finance director Arief Budiman said in Jakarta on Thursday that its plan to share its assets in upstream projects and refineries was part of the company’s long-term partnership strategy.
“Partnerships are common in any sector so that we can continue to invest in infrastructure,” added Arief as reported by kontan.co.id.
In a letter obtained by The Jakarta Post on Wednesday, State-Owned Enterprises Minister Rini Soemarno granted Pertamina permission to conduct several measures “in order to save the firm’s financial situation”. The ministry’s undersecretary for mining, strategic industries and media affairs, Fajar Harry Sampurno, confirmed that the letter was issued on June 26.
Institute for Development of Economics and Finance economist Bhima Yudhistira linked such a move to populist government policies to maintain the low price of fuel, adding that it was a ticking bomb for the company’s finances.
Apart from allowing it to share its assets in the upstream projects, Rini, in her letter, also gave Pertamina the green light to spin off refineries in Cilacap, Central Java, (RU IV Cilacap) and a refinery in Balikpapan (RU V Balikpapan) in East Kalimantan in line with the refinery development master plan.
The minister also suggested that Partamina revise its corporate policy that could significantly affect the company’s finance. (bbn)
