September 12, 2025 | 02:36 pm
TEMPO.CO, Jakarta - Indonesia's state-owned energy giant Pertamina is set to merge three subsidiaries to cut operational costs. The merger is set to involve PT Pertamina Patra Niaga, Kilang Pertamina Internasional, and Pertamina International Shipping.
Pertamina's CEO Simon Aloysius Mantiri announced the plan to merge the three subsidiaries during a parliamentary hearing with House Commission VI, on Thursday, September 11, 2025. According to him, the company is aiming to conclude the merger process before 2026.
Simon mentioned that the three Pertamina subsidiaries would be merged into a new company with a new name. But he stopped short of specifying the name, as talks are underway.
The merger cited a decline in profits at each subsidiary due to the global conditions, except for refinery production, which recorded growth thanks to the construction of new oil refineries. This has impacted the company's income since the revenue fails to support production costs.
Simon said the situation would be disadvantageous for the company if left unaddressed. "Refinery margins are shrinking, and it would, overall, not be good for the company's bottom line," said the Pertamina executive.
Despite the shortcomings, Simon announced that Pertamina recorded revenue of Rp672 trillion as of July 2025. He said Pertamina's financial performance remains positive amidst the downward pressure on global oil prices. He mentioned that Pertamina is making efforts to face various global challenges to maintain positive financial performance in the first half of this year.
Simon conveyed that Pertamina, compared to other state-owned enterprises, has contributed to the country the most, through taxes, dividends, and Non-Tax State Revenue (PNBP), logging Rp225.6 trillion as of July 2025.
Regarding its operational achievements, Pertamina noted several accomplishments, including the discovery of new oil and gas reserves amounting to 724 million barrels of oil equivalent in the Rokan block.
The company is also championing the first sustainable aviation fuel production in Southeast Asia with a capacity of 9 thousand barrels per day. Additionally, the tank revitalization project in Arun, with a capacity of 127,200 m³, targeted for completion in 2025.
Simon also said going forward, Pertamina will focus on its core business lines in the oil, gas, and renewable energy sectors. Some other business units, such as the airline, are potentially set for a merger with Garuda Indonesia.
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