November 19, 2025 | 06:17 pm
TEMPO.CO, Jakarta - Indonesia's state-owned energy giant PT Pertamina will begin streamlining several of its subsidiaries starting in 2026. The move is part of a broader government plan to consolidate Indonesia’s state-owned enterprises and improve efficiency, following President Prabowo Subianto’s directive.
Prabowo has assigned Danantara Asset Management to oversee the rationalization program, which aims to reduce the current network of nearly 1,000 state-owned enterprises and affiliated companies to about 200.
Agung Wicaksono, Pertamina’s Director of Transformation and Business Sustainability, said the company will consolidate several business lines to sharpen its focus on core energy operations and support national energy self-sufficiency.
“We want Pertamina to be leaner, more agile, and able to make faster decisions. This will improve competitiveness, reduce costs, and eliminate overlapping functions,” Agung said during a hearing with House Commission VI on Wednesday, November 19, 2025.
Non-Core Businesses to Be Consolidated
The consolidation effort will extend beyond the downstream sector to include four non-core business groups. These include Pertamina’s healthcare arm, Pertamina Bina Medica IHC, which will undergo restructuring coordinated by Danantara throughout 2025.
Pertamina’s hotel subsidiary, PT Patra Jasa, will also be transferred. Under the new structure, its hotel operations will be managed by PT Hotel Indonesia Natour.
Agung added that Pertamina’s aviation subsidiary, Pelita Air Service, is being prepared for divestment and is currently in the process of merging with PT Garuda Indonesia.
Pertamina’s insurance business is also part of the consolidation. Agung said the restructuring of state-owned insurance companies, including those within Pertamina’s ecosystem, is being managed through the Indonesia Financial Group.
Subsidiary Liquidations Already Underway
Pertamina has already begun streamlining this year. Two subsidiaries that no longer provide strategic value were liquidated: TRB London in February and Pertamina Energy Services Pte. Ltd. in Singapore in July.
In addition to non-core restructuring, Pertamina is reorganizing its downstream operations. The company plans to integrate three key business areas: commercial and trading, refinery and petrochemical operations, and logistics and marine services. The process is awaiting internal approval and is expected to take effect in 2026.
Editor’s Choice: Indonesia's Pertamina to Cut and Consolidate Subsidiaries by 2026
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