Indonesian state oil company PT Pertamina will allocate US$133 billion on capital expenditure over the next six years, its strategic director Iman Rachman told parliament.
He said 47 percent of the investments would come from Pertamina’s own funds, 10 percent would be raised through project financing, 28 percent would be raised from other external funds and 15 percent would come from equity financing. He added that initial public offerings (IPOs) would be part of Pertamina’s fund raising strategy.
Pertamina’s CEO Nicke Widyawati told parliament Monday Pertamina’s operating cash flow in April and May was negative.
Widyawati said the company’s revenue could not cover operating costs. “Firstly, demand fell and we could not cover our operational costs. Secondly, there was foreign exchange loss as the rupiah depreciated while we pay (for oil imports) in US dollars,” Widyawati said.