Regulations on holding companies expected before year-end

By Thomas Sembring

State Minister of State-Owned Enterprises Rini Soemarno hopes that the required regulations as the legal umbrella to set up holding companies for state-controlled firms engaged in mining, and oil and gas businesses can be completed before the end of this year.

She acknowledged on Thursday that the process to create holding companies for several state-owned firms have been slower than anticipated, but stressed that holding companies for mining, and oil and gas are the most ready to be realized. ?State firms engaged in mining and oil and gas are the most ready,? she said.

As been previously reported, the ministry plans to set up holding firms for several state firms in a bid to help bolster efficiency, increase funding capacity, and expand their assets.

In the mining sector, the government has assigned state-owned aluminum maker PT Indonesia Asahan Aluminium (Inalum) to become the holding company for state-controlled mining firms including PT Bukit Asam Tbk, PT Aneka Tambang Tbk, and PT Timah Tbk, all of which are also listed on the IDX.

Meanwhile, in the oil and gas sector, state-controlled gas distribution firm PT PGN Tbk, which is listed on the Indonesia Stock Exchange, will become a subsidiary of state-owned oil and gas firm PT Pertamina once the holding company is realized.

Editing by Reiner Simanjuntak