This estimate is a projection until 2030."Jakarta (ANTARA News) - Edwin Hidayat Abdullah, the Deputy of Energy Business at the State-owned Enterprises (SOEs) Ministry, said that additional state capital will increase the investment capacity of the oil and gas holding company.
He said that the investment capacity would amount to US$36.2 billion within the next 15 years.
"This estimate is a projection until 2030," Edwin said here on Thursday.
According to him, the holding, which combines the National Oil Company, Pertamina and the National Gas Company, PGN, will improve efficiency.
In addition, the oil and gas holding company is expected to increase Pertaminas assets to $72.4 billion, he said.
The state-owned oil and gas holding company is also expected to grow and provide diversification in business, increase overall risk profits and improve best practices in various aspects of management, he added.
Edwin explained that government regulations concerning the placement of the state capital in SOEs have been processed in the Secretariat of State, and once it is signed by President Joko Widodo (Jokowi), the process of formation of the holding could be accelerated.
Meanwhile, Chairman of the Energy and Mineral Resources at Indonesian Businessmen Association ESDM, Sammy Hamzah, said that mergers and acquisitions should consider three aspects, namely synergy among companies, market development and financing.
In the meantime, Faisal Basri, an economist at the University of Indonesia (UI), asserted that the state-owned holding for oil and gas sectors should not be limited to corporate action because the government policy was influenced by the technocrats, bureaucrats and politicians.
(Uu.KR-LWA/INE/KR-BSR/B003)
Editor: Priyambodo RH
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