JAKARTA: The government is considering merging two subsidiaries of state-owned oil and gas holding company Pertamina after a corruption scandal over billing and selling lower-grade imported fuel as more expensive high-octane fuel, which caused an estimated US$11bil in state losses.
State-owned enterprises (SOEs) Minister Erick Thohir vowed last Saturday to institute reforms as a preventive measure for similar fraudulent practices, including possibly merging PT Pertamina Patra Niaga and PT Kilang Pertamina Internasional (KPI), two subsidiaries allegedly implicated in the ongoing graft case.
