Pertamina to become a liability firm by 2001

Jun 14, 1999 02:00 AM

Indonesian state owned oil company Pertamina will be transferred into a liability company by 2001 at the latest, provided the draft bill on oil and gas could be finalised in 1999.
"Discussions on the draft bill to become law will be completed in July 1999," Minister for mines and energy Kuntoro Mangkusubroto said.
He said the draft bill was going side by side with efforts towards privatisation of state enterprises, presently encouraged by the government.
After the draft bill on oil and gas has become law Pertamina will become a state liability company which must go through various processes and stages.
Firstly, it must go through various government agencies, like Justice ministry, then to determine the asset's value.
Kuntoro reminded that the process to determine the asset value should proceed with prudence, because not all assets are automatically owned by Pertamina, like refineries.
"There are refineries that are wholly owned by Pertamina. But there are also those which need further discussions to find out who exactly own them, like a LNG refinery which is subject to another pattern than ordinary oil refineries," the minister said.
He believed the entire process will take long time, nonetheless the government targets to finalise the entire process within two years starting now.
"After that, Pertamina may undertake privatisation in line with the oil and gas law which by the time should have been enacted by the House of Representatives," he said.
Privatisation after becoming a liability company may take the form of selling shares of oil refineries, holding company, strategic partner or any other model.
"What is important is to maximise the asset's value, while efficiency is just one of the aims," the minister said.
On the possibility of the new administration after general elections having a different view regarding the oil and gas law after it has been duly endorsed by the House, he only hoped the policy could be followed up.
"But if the new administration wishes to revise it, it can do so," he added.

Source: Asia Pulse via Iinoil
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