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Indonesia targets IPOs of Pertamina sub-holdings within two years

Indonesia targets IPOs of Pertamina sub-holdings within two years

A view of state-owned oil giant Pertamina's refinery unit IV in Cilacap, Central Java, Indonesia, Jan 13, 2016. (File photo: REUTERS/Darren Whiteside)

JAKARTA: Indonesia's State-Owned Enterprises Minister Erick Thohir said on Friday (Jun 12) he aimed to group units of state oil and gas company Pertamina into "sub-holdings" and launch initial public offerings within two years.

Thohir is trying to revamp hundreds of Indonesian state companies to boost profitability, as well as improve transparency and public trust.

In the case of Pertamina, he wants to create more sub-holdings to group upstream units, as well as downstream and trading units, and prepare them to be publicly listed companies.

"The target is to have one or two sub-holdings to go public within two years. This is part of efforts to improve transparency and their capabilities," Thohir told a streamed news briefing.

Pertamina already has a gas sub-holding under Perusahaan Gas Negara.

Pertamina shareholders appointed on Friday former investment banker Iman Rachman as a director to manage restructuring and IPO preparations, Thohir said.

"It's time for consolidation and efficiencies," Thohir said, adding he hoped it would help Pertamina improve its oil and gas production and reduce refining costs.

On Friday, Pertamina shareholders also approved a new board of directors for the company, with a reduced number of directors, while retaining Nicke Widyawati as the chief executive.

Source: Reuters/dv

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