Indonesia Conference Directory

More than decades, Indonesias economic growth depend on the oil and gas sector. In the past few years, oil and gas sector-s contribution to state revenues decreased significantly along with the decline in reserves and production. The state revenue from the oil and gas industry decreased by almost 80% from Rp216 trillion in 2014 (14% of state revenues) to Rp44 trillion in 2016 (2.8% of state revenues). Perusahaan Gas Negara or also called as PGN is the largest national company in the natural gas transportation and distribution sector. In order to make the business growing wider, PGN are going to acquiring Pertamina Gas or Pertagas. The acquisition is part of the establishment of holding company in energy sector by the Ministry of State Own Enterprises, which was established on April 11, 2018. This research is made to know how the value of Perusahaan Gas Negara (PGN) through calculating it with the discounted cash flow method using free cash flow to the firm. The data are obtained from PGNs financial report from 2013 to 2018.