Pertamina to focus on its core business<\/p>\n
JAKARTA (JP): The state-owned oil and gas company Pertamina
\nstated it would no longer inject equity funds into its
\nsubsidiaries so that it could focus on its core business.<\/p>\n
\"We have stopped injecting capital into them (the company's
\nsubsidiaries). We have decided not to develop them any longer so
\nthat they can develop themselves,\" Pertamina director for general
\naffairs Baharuddin said in a hearing with the House of
\nRepresentatives Commission V for manpower and trade.<\/p>\n
Baharuddin said Pertamina planned to \"abandon\" its
\nsubsidiaries not involved in Pertamina's core business.<\/p>\n
He did not specify if Pertamina would liquidate or sell the
\ncompanies in the future.<\/p>\n
\"We want to concentrate on our core business,\" he said.<\/p>\n
Pertamina's subsidiaries which are not involved in the oil and
\ngas business include PT Elnusa, active in telecommunications-
\nrelated services; PT Pertamina Tongkang, involved in sea
\ntransportation services; PT Patra Dok Dumai, which operates the
\nDumai dockyard in Riau; air carrier PT Pelita Air Service; PT
\nPatra Jasa, active in the hotel industry; and PT Patra Tani,
\ninvolved in the agricultural industry.<\/p>\n
Pertamina had liquidated its nonperforming subsidiary Patra
\nTani due to its years of loss. But he said Pertamina would still
\nfinancially assist two other companies in the red -- Pelita Air
\nService and Patra Dok Dumai.<\/p>\n
Pelita is expected to suffer a loss of Rp 15 billion (US$3.8
\nmillion) this year, while Dok Dumai's loss is estimated to reach
\nRp 2 billion.<\/p>\n
Pertamina would lend both companies Rp 20 billion to pay their
\ndebts.<\/p>\n
Baharuddin expected both companies would be able to earn
\nprofits or at least self finance their operations next year. He
\ndid not specify Pertamina's plan if both companies still suffered
\nlosses.<\/p>\n
Pertamina's subsidiaries which are expected to book profits
\nthis year include El Nusa with an estimated after-tax profit of
\nRp 23.6 billion, Patrajasa with a Rp 6.9 billion profit and
\nPertamina Tongkang with a Rp 8.9 billion profit.<\/p>\n
Baharuddin also said Pertamina had stopped injecting funds
\ninto its hospitals across the country over the past three years
\nand planned to set up a company called PT Rumah Sakit Pertamina
\nto manage all the hospitals.<\/p>\n
Pertamina finance director Soegianto told the commission the
\ncompany's consolidated assets reached Rp 33.2 trillion in the
\n1996\/1997 fiscal year ending on March 31.<\/p>\n
He said Pertamina's total debts reached Rp 15.3 trillion in
\nthe same period, comprising of Rp 6.6 trillion in short-term
\ndebts and Rp 8.7 trillion in long-term debts.<\/p>\n
He said the rupiah's sharp depreciation against the U.S.
\ndollar did not affect the company's ability to service its debt
\nin dollars because the company made debt payments with its export
\nrevenues. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pertamina-to-focus-on-its-core-business-1447893297",
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