Plan to form Indonesian holding companies in process of internal consolidation

Jakarta (ANTARA News) – The plan to establish holding companies for Indonesian state companies in various sectors is currently in the phase of internal consolidation.

“We are optimistic the process would continue,” Vice President for Corporate Communications of the state oil and gas company PT Pertamina Wianda Pusponegoro said here on Wednesday.

Wianda acknowledged the process of forming the holding companies have been slow.

She said state companies in a number of sectors have been ready for the establishment of holding companies such as state companies operating in general mining, toll road and oil and gas sectors.

“State companies in the mining sector is the most prepared in internal consolidation,” she said.

Earlier, an observer in energy policy Sofyano Zakaria said PT Pertamina is more prepared and meet the requirements to be the holding company for state companies operating in the energy sector.

“Pertamina has the criteria to become a holding company with its experience in global scale, having large assets, and capability to make profit,” Sofyano said.

He said if the Ministry of State Companies as the shareholder of state companies named Pertamina the holding company for state energy companies including PT PGN (Perusahaan Gas Negara) and electricity company PT PLN, there should be no problem as a holding is more coordinated.

So far the plan to establish energy holding company is still in phase of study and evaluation as there has been no government regulation to serve as a legal basis.

“Legal basis is needed for Pertamina to act as an energy holding company grouping all other oil and gas companies, electricity, geothermal companies, etc,” Sofyano.

It earlier said that the establishment of holding companies is expected to give state companies greater independence from the bureaucracy.

“I think the plan to establish holding companies by the government is good. It would make state companies to operate more professionally,” a lawmaker from the Commission VI Eka Sastra said.

Eka said state companies in other countries have become world players after they are grouped in super holdings.