JAKARTA — The Daya Anagata Nusantara Investment Management Agency (BPI Danantara) is reviewing the possibility of merging PT Perusahaan Gas Negara Tbk (PGN) with PT Pertamina Gas (Pertagas).
The review is part of efforts to restructure the business operations of state-owned gas companies, particularly to strengthen the integration of midstream and downstream oil and gas (oil and gas) activities.
Head of the State-Owned Enterprises Regulatory Agency and Chief Operating Officer (COO) of Danantara Indonesia, Dony Oskaria, said PGN and Pertagas are currently already within the same corporate structure, with PGN having an ownership relationship with Pertagas.
Therefore, Danantara is examining the possibility of further consolidating the business activities of the two companies.
“PGN and Pertagas are already under the same structure, with Pertagas under PGN. We are currently studying how the consolidation process could proceed in the future, between the midstream and downstream businesses. So there is a possibility that we could merge them,” Dony said in Jakarta.
Dony emphasized that the potential merger has not yet been finalized. Danantara still needs to conduct a comprehensive assessment before determining the structure to be implemented.
According to him, several options are being considered, including the corporate structure and which entity would eventually serve as the parent or holding company. The government will compare the various options based on their potential benefits and costs.
Beyond the corporate structure, the national gas business is expected to strengthen its midstream and downstream operations going forward. The consolidation is therefore expected to create greater integration across the gas business chain, from distribution to end-user utilization.
However, Danantara has not yet determined when a decision on the potential merger will be made. Dony emphasized that such a strategic decision cannot be taken without a thorough assessment.
