Indonesian quasi-sovereigns are mostly in the form of state-owned enterprises. Currently there are over 100 SOEs, and many of them also have subsidiaries. Among the many Indonesian SOEs, Pertamina stands out as the largest company. Pertamina has several subsidiaries, and some of the subsidiaries also have sub-subsidiaries. In the past, Pertamina was far larger than the other SOEs. However, as time went by, a number of companies have grown increasingly larger, including PLN (The Power Company), PT Telkom (Telecommunication Company), and Bank Mandiri and Bank BRI, both of which are the largest banks in the country.
In doing business, PT Pertamina developed a number of funding sources to finance its investment activities. Corporate bonds are being used by PT Pertamina to enhance its funding capacity. In the past few years PT Pertamina has issued several series of global bonds, which now total $8,750 million. These bonds are not guaranteed by the government. However, in preparing for the financing program of the new and refurbished refineries, PT Pertamina has discussed the possibility of involving government guarantees.
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