Indonesia's State-Owned Enterprise Minister Erick Thohir said on Friday he aimed to group units of state oil and gas company PT Pertamina into "sub-holdings" and launch initial public offerings within two years.
Thohir is trying to revamp hundreds of Indonesian state companies to boost profitability, as well as improve transparency and public trust.
In the case of Pertamina, he wants to create more sub-holdings to group upstream units, as well as downstream and trading units, and prepare them to be publicly listed companies.
"The target is to have one or two subholdings to go public within two years. This is part of efforts to improve transparency and their capabilities," Thohir told a streamed news briefing.
Pertamina already has a gas sub-holding under PT Perusahaan Gas Negara.
Pertamina shareholders appointed on Friday former investment banker Iman Rachman as a director to manage restructuring and IPO preparations, Thohir said.
"Its time for consolidation and efficiencies," Thohir said, adding he hoped it would help Pertamina improve its oil and gas production and reduce refining costs.
On Friday, Pertamina shareholders also approved a new board of directors for the company, with reduced number of directors, while retaining Nicke Widyawati as the chief executive.
(This story correctc typographical error in fourth paragraph)
(Reporting by Wilda Asmarini; Writing by Fransiska Nangoy; Editing by Ed Davies)