Pertamina may become holding firm

Indonesia's state oil company Pertamina expects to become a limited liability holding company early next year, with at least two separate entities set up on the road to privatisation in 2006, company officials said yesterday.

According to a new oil and gas law Pertamina, which once had a monopoly in the oil sector, has to become a limited liability company under state control within two years.

"President Megawati Sukarnoputri wants the process of Pertamina becoming a limited liability company accelerated. I expect early next year has been concluded (as the target)," Pertamina president director Baihaki Hakim told reporters after meeting Megawati.

Another Pertamina official said the firm would likely set up at least two separate entities, one for upstream exploration and production, the other for downstream refining and marketing. Pertamina will become the holding company.

Hakim said currently Pertamina was in the process of re-valuing its assets which could be worth around 200 trillion rupiah ($19.6 billion).

Pertamina has said its subsidiaries would be privatised in 2006.