Preventive measure: Erick speaks at an event in Jakarta. The SOE Minister says he will discuss the restructuring options for Pertamina subsidiaries with Bahlil and the Upstream Oil and Gas Regulatory Task Force. — AFP
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.
