Meanwhile, for 2013, Pertamina has set aside $2.3 billion in its budget for mergers and acquisitions (M&As). Pertamina has a total investment fund of $6.7 billion for the year, of which $2.3 billion is earmarked for M&As, as it aims to meet its hydrocarbon production target of 750,000 bpd of oil equivalent by 2015. The company plans to raise its output fourfold over the course of the next 12 years, which is likely to be determined by its expansion strategy that is focused on upstream acquisitions. Further, it also expects to conclude its acquisition of a majority stake in state-owned engineering and construction company PT RekayasaIndustri (Rekind) from PT Pupuk Indonesia Holding Company (PIHC) by end-2013. To complete the transaction, Pertamina is likely to utilise funds from its M&A budget or divert its directorate funds. Currently, state-owned fertiliser producer PIHC has a 95.03 per cent stake in Rekind, with the Indonesian government holding the remaining 4.97 per cent.
