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Indonesia's Pertamina creates four new sub-holding units
[JAKARTA] Indonesia's Pertamina said it is creating four new "sub-holding" units, including subsidiaries across the oil and gas supply chain.
The move is part of Indonesia's effort to revamp hundreds of state companies to boost profitability, as well as improve transparency and public trust.
"Presently, Pertamina's business scope is very broad," chief executive Nicke Widyawati said in a statement late on Saturday.
"With these sub-holdings, each business will be able to grow more quickly and aggressively to develop world-class capabilities," she added.
The four new units include an upstream unit under Pertamina Hulu Energi, a refinery unit under Kilang Pertamina Internasional, a power and renewable energy unit under Pertamina Power Indonesia and a trading unit under Patra Niaga.
Pertamina already has a gas sub-holding under Perusahaan Gas Negara.
Indonesia's State-Owned Enterprise Ministry said on Friday that it planned to group Pertamina's units into "sub-holdings" which will eventually launch initial public offerings within two years.