Friday, 22 June 2018 | 02:38 WIB

After Signing by Jokowi, Transfer of PGN’s Shares to Pertamina Will be via AGM

Following the transfer of shares, PGN becomes a subsidiary of Pertamina and also lost its status as a state-owned enterprise (SOE).

JAKARTA, NNC - President Joko "Jokowi" Widodo has signed the Government Regulation (PP) No. 6 of 2018 concerning the Addition of State Equity Participation of the Republic of Indonesia into Share Capital of Company PT Pertamina.

With this legitimate regulation, the government increased state equity participation to Pertamina in the form of transfer of the government-owned series B shares in PT Perusahaan Gas Negara (Persero) (IDX:PGAS) or PGN.

Responding to the policy, Pertamina's Director of Human Resources Nicke Widyawati explained that the company will conduct the Annual General Meeting (AGM) of Shareholders for PGN's equity participation to Pertamina.

"As for the transfer of government's shares in PGN to Pertamina, the deeds are handed over. Then the value is made in the decision, after that is out, then we hold Pertamina's AGM," she said in Jakarta on Monday (3/12/2018)

Nicke added it will be held anytime soon after the transfer of deeds is made this week. "We planned this month, March 16. But, after that we can directly conduct the AGM on Monday [next week]," she said.

Meanwhile, the AGM of shareholders is used as the basis for the PGN's initial equity participation to be able to enter Pertamina. "Yes, [officially at AGM]. As for now, the process is how the government wants to give PGN's shares to Pertamina and Pertamina is accepting," she said.

With the transfer of shares, PGN becomes a subsidiary of Pertamina and also lost its status as a state-owned enterprise (SOE). Furthermore, PGN is only a limited liability company.