Indonesia’s Saka Energi’s upstream assets could be up for sale

Indonesia’s Saka Energi’s upstream assets could be up for sale

The assets of troubled upstream player Saka Energi could be put up for sale as part of an effort to resolve the heavily indebted company's financial predicament amid a tussle between Indonesia's state-owned enterprises (SOEs).

Crucially, Saka Energi is no longer deemed to be aligned with its parent, Indonesian gas company Perusahaan Gas Negara (PGN), which is partly state-owned. Significantly, the level of Saka's operational integration and strategic importance to PGN has weakened since mid-2018 following the restructuring of state-owned oil and gas companies, which transferred the government's 57% share of PGN to state-owned Pertamina.