State-owned oil and gas company PT Pertamina wants to increase its stake in insurance subsidiary PT Tugu Pratama Indonesia. Pertamina plans to take over 17.5% stake owned by state owned asset management company PT Perusahaan Pengelola Aset (PPA), Tugu Pratama President M. Afdal Bahaudin said.
Pertamina already controls 65% of Tugu Pratama including through 20% stake owned by Pertamina Pension Fund.
Pertamina wants to have full support from the insurance company in its business in upstream oil ventures, Afdal said. Meanwhile, Tugu Pratama, the largest insurance company in the oil and gas sector, plans to launch initial public offering in the second half of this year to strengthen its capital, he said.