By OGJ editors
HOUSTON, Aug. 6 -- Indonesia's state oil company Pertamina made significant progress toward becoming a limited liability company (LLC) with the signing of a presidential decree authorizing the necessary legal procedures.
President Megawati Sukarnoputri signed the decree last month, authorizing LLC status by November.
LLC status will enable Pertamina to structure its operations more competitively, focus on its growing core businesses upstream and downstream, and continue efforts to improve governance and transparency, a Pertamina release said.
Under the decree, Pertamina will decide within 2 years whether to keep noncore business units, such as its hotel, hospital, and airline units. The LLC status will allow Pertamina the flexibility to realign its operations.
Pertamina Pres. and CEO Baihaki Hakim said, "Pertamina will now have to focus on both the domestic and international markets to grow its revenue and enhance the value of the firm." He noted that all oil refineries and natural gas liquefaction plants would remain under Pertamina's control.
