Two SOE holdings to be completed in 2016

The formation of an oil and gas holding company and a mining holding company will be completed in 2016, State-Owned Enterprises Minister Rini M Sumarno has estimated.

“We expect only two state-owned holdings that could be completed this year, while the rest is projected in 2017,” Rini said here Thursday after having a meeting with Finance Minister Sri Mulyani.

Her meeting with the finance minister was to discuss the details of the preparation to form a state-owned holding, according to Rini.

The discussion covered various aspects of how the formation of a holding company and the status of the assets will be put together, she explained.

“We also discussed the governments shares in Freeport of 9.36 percent which will be automatically transferred to the state-owned mining holding,” Rini noted.

The oil and gas state-owned holding will bring together two great companies, namely PT Pertamina (state-owned oil and gas company) and PT PGN (state-owned gas company), in which Pertamina will be designated as the parent company.

Meanwhile, mining SOE holding brings together four companies, namely PT Inalum (aluminum mining), PT Bukit Asam Tbk (coal mining), PT Timah Tbk (lead mining) and PT Aneka Tambang (gold and silver mining) in which Inalum is projected as the parent company.

“PGN is a public company, so the process of formation must also be reported and adjusted with the regulation of the Financial Services Authority,” Rini said.

Once that is done, the formation of holdings should be reported and discussed further with the House of Representatives.

“After all the processes are passed, a Presidential Regulation will then be issued for each of the state-owned holdings,” she said.

In addition to oil and gas holding, and mining holding, the government is also preparing four other holdings of toll roads and construction, housing, food, as well as banking and financial services.

Source: Antara News