Pertamina to set up holding company

REPUBLIKA.CO.ID, JAKARTA -- Indonesia's state-owned energy company PT Pertamina plans to set up a holding company to manage 22 of its subsidiaries.

"The study for it (to establish the holding company) is expected to be completed before the end of 2015," President Director of PT Pertamina Dwi Sutjipto said here on Monday.

He added that the holding company was urgently needed in line with the extension of the company's business scale.

"Under the holding company, Pertamina's businesses can be categorized into three lines, namely upstream, mainstream and downstream," he pointed out.

Sutjipto also pointed out that Pertamina must immediately set up a holding company that can serve as a model for further development in the future.

Regarding the study, he stated that it will evaluate an organizational structure, including an accounts system, legal aspects and others.

Citing an example, Sutjipto, who was the former president director of PT Semen Indonesia, referred to the cement firm's success after setting up a holding company in 2013.