November 19, 2025 | 04:54 pm
TEMPO.CO, Jakarta - PT Pertamina (Persero) of Indonesia plans to streamline and consolidate its network of subsidiaries by 2026, following President Prabowo Subianto’s push to simplify the country's sprawling state-owned enterprise structure.
The government is seeking to reduce inefficiencies and improve governance across the sector.
Indonesia currently has around 1,000 state-owned enterprises (SOEs) and affiliated companies, a number Prabowo aims to cut to roughly 200 through a major rationalization program managed by Danantara Asset Management. Pertamina, as one of the country’s largest SOEs, is a key part of this consolidation effort.
“We want Pertamina to be more streamlined, agile, and capable of making faster decisions. This will improve competitiveness, reduce costs, and eliminate overlapping functions,” said Pertamina’s Director of Transformation and Business Sustainability Agung Wicaksono during a hearing with House Commission VI on Wednesday, November 19, 2025.
Agung noted that Pertamina’s broad portfolio requires restructuring to align with the government’s mandate to advance energy self-sufficiency and simplify operations.
The streamlining is intended to refocus the company on its core businesses: oil and gas, refining, energy distribution, and new and renewable energy.
He added that the consolidation is expected to generate greater value for shareholders. Pertamina is currently targeting three subsidiary segments for integration.
The first is downstream business integration, covering commercial and trading, refinery and petrochemical operations, and logistics and marine services. This integration is ongoing and awaiting internal approval.
Beyond the downstream segment, Pertamina is also consolidating four non-energy business groups: hospital services, hospitality, aviation, and insurance. “Integrated operations will begin in 2026,” Agung said.
Agung also reported that two subsidiaries deemed non-strategic were liquidated in 2025: TRB London and Pertamina Energy Services Pte. Ltd. in Singapore. “This restructuring is part of our ongoing transformation and governance reforms,” he said.
Hendrik Yaputra contributed to the writing of this article.
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