Indonesia: Oil, gas holding firm establishment postponed until April 26

• Apr 02, 2018

The government has been forced to postpone the establishment of a state-owned oil and gas holding firm until at least April 26 following its inability to issue the needed deed of share transfer on time.

The government initially intended to transfer its 57 percent stake in gas distributor PT Perusahaan Gas Negara (PGN) to Pertamina by the end of March in order to transform oil and gas giant Pertamina into a holding company.

This plan was approved by PGN’s shareholders during an extraordinary general shareholders meeting on Jan. 25 under the condition that the government would issue within two months the government regulation and the deed of share transfer that would serve as the legal basis for such an action. This means the shareholders’ approval is no longer valid after March 25.

President Joko “Jokowi” Widodo then signed the government regulation in late February. However, Finance Minister Sri Mulyani Indrawati had only signed the deed of share transfer on March 28, or three days after the deadline.

“Subsequently, we will have to ask for the approval of PGN’s shareholders once again during the company’s annual shareholders meeting [on April 26],” Fajar Harry Sampurno, the State-Owned Enterprise Ministry’s undersecretary for mining, strategic industries and media affairs, told The Jakarta Post on Friday.

“That’s the only homework we have.”

Previously, Pertamina human resources director Nicke Widyawati said the Finance Ministry needed some time to sign the deed of share transfer because it had to calculate the value of PGN’s shares that would be transferred to Pertamina. (bbn)

Source: http://www.thejakartapost.com/news/2018/04/02/oil-gas-holding-firm-establishment-postponed-until-april-26.html