Pertamina's capital set at Rp 200 trillion

The Jakarta Post, Jakarta

The Ministry of Finance has set state oil and gas company Pertamina's authorized capital at Rp 200 trillion (US$23 billion) following the company's change of status from a semi-profit- making enterprise into that of a limited liability company.

Ministry spokesman Maurin Sitorus said the authorized capital consisted of state assets placed in Pertamina, and the firm's assets in its subsidiaries and joint venture companies.

"However, it does not include assets handed over to the upstream oil and gas authority BP Migas," Maurin said.

The Rp 200 trillion authorized capital includes a paid-up capital of Rp 100 trillion provided by the government to set up the firm's article of incorporation and temporary balance sheet.

"Definitive capital will be determined in the future based on joint calculations by the Ministry of Finance and the Ministry of Energy and Mineral Resources," Maurin said.

The joint calculations will be based on the assets owned by Pertamina and the valuation of those assets according to market prices.

Last week, Pertamina officially became a limited liability company in line with Law No. 22/2001, ending Pertamina's control of the country's oil and gas upstream sector and, eventually, its monopoly over the distribution of oil products. The firm transferred its authority over the upstream sector to BP Migas last year, but it is still allowed to monopolize the sale of fuel on the domestic market until 2005.

Pertamina now operates nine refineries, dozens of fuel depots, thousands of gas stations and two LNG plants. Some of the assets were built using state money and were thus considered state assets.

Its subsidiaries include PT Rumah Sakit Pusat Pertamina (hospital), PT Patra Jasa (hotels and restaurants), PT Pelita Air Service (air transportation) and PT Patra Dok Dumai (shipping docks).