REPUBLIKA.CO.ID, JAKARTA -- State-owned oil and gas company Pertamina must acquire state-owned gas distributor firm PGN for national interest, nor for political one, energy observer Komaidi Notonegoro said.

"The acquisition must be done based on business considerations not on the political aspect in the face of 2014 general elections," Komaidi said here on Tuesday.

He hoped that the acquisition of PGN by Pertamina should have a good impact on the country's energy resilience, state-owned companies and wider benefit for the people.

Former state enterprises ministry's secretary Said Didu suggested that the acquisition of PGN by Pertamina must be carried out after a careful study was done. Didu pointed out that it was not for Pertamina to acquire the gas distributor company.

"The acquisition must be agreed upon by the chief economic minister, the finance minister, the House of Representatives (DPR) and shareholders' general meeting," Didu remarked.

He said that if the acquisition was to be done due to political considerations, the two companies had better stay as they were now.

Didu is of the view that the policy of buying PGN by Pertamina was inseparable from Political considerations.

"We are concerned with the conditions of state firms. State firms have often served as a means of improving image. I am afraid that in the face of the elections, the same thing will be repeated," Didu stressed.

Earlier, the government has agreed to PT Pertamina's option to acquire PT PGN, asking the state-owned oil and gas company to make a study on its corporate action plan.

The government's agreement was stated in a document, the copy of which was made available to Antara on Sunday.

The document contained the results of a meeting between State-owned Enterprise Minister Dahlan Iskan and the Board of Directors and Commissioners of Pertamina.

In the meeting which was held last Tuesday, also present were State-Enterprise Deputy Minister Dwiyanti Tjahjaningsih, Pertamina President Director Karen Agustiawan and Chief Commissioner of Pertamina Sugiharto.

Sugiharto said the acquisition of state-owned gas distribution firm PGN would not spark protest from minority shareholders (the public) because the acquisition would ensure the company's survival.

He said Pertagas, a subsidiary of Pertamina, controlled gas distribution so that it would not create protest.

In the meantime, M Yasin, a member of Pertamina's board of commissioners, said that the acquisition process would take place for eight months, including 3.5 months for its execution.

In its scenario, Pertamina is planning to merge PT Pertagas and PT PGN and the result of the merger would be made a Pertamina's subsidiary.

Pertamina said it would be the best step to merge the two companies.

The share composition of the merger would be 30-38 percent for Pertamina, 36-40 percent for the government and 26 - 30 percent for the public.

If the government authorizes Pertamina to hold its share portion, than Pertamina will be the majority share holder, with a stake portion of 70-74 percent.

The government in this case will remain in control of the company through a share holder agreement.

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