According to reports, the Indonesian government has rejected the state-run oil and gas company PT Pertamina’s proposal to purchase another state-run gas distributor, Perusahaan Gas Negara (PGN). The understanding behind the purchase proposal was to create a single energy holding company in Indonesia. Mergers and acquisitions constitute a key part of the company’s strategy to become the top energy company in Southeast Asia by 2025. In 2010, the company had to shelve its plan to acquire Medco International after prolonged political disagreements. Similarly, many other deals by Pertamina have either been scrapped or are “still pending” due to various reasons.
