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Govt mulls merging Pertamina subsidiaries after fuel import scandal

The SOEs minister has vowed to reform Pertamina, including by possibly merging PT Pertamina Patra Niaga and PT Kilang Pertamina Internasional, two of at least three subsidiaries currently embroiled in a fraud and corruption probe by the AGO related to fuel imports in 2018-2023.

Ruth Dea Juwita (The Jakarta Post)
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Tue, March 4, 2025 Published on Mar. 3, 2025 Published on 2025-03-03T12:20:45+07:00

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Govt mulls merging Pertamina subsidiaries after fuel import scandal Attendants serve customers on Feb. 27, 2025, at a Pertamina gas station in Semarang, Central Java. (Antara/Aprillio Akbar)

T

he government is considering merging two subsidiaries of state-owned oil and gas holding company Pertamina after a corruption scandal over billing and selling lower-grade imported fuel as more expensive high-octane fuel, which caused an estimated US$11 billion in state losses.

State-Owned Enterprises (SOEs) Minister Erick Thohir vowed on Saturday to institute reforms as a preventive measure for similar fraudulent practices, including possibly merging PT Pertamina Patra Niaga and PT Kilang Pertamina Internasional (KPI), two subsidiaries allegedly implicated in the ongoing graft case.

“Regarding Pertamina, we will do a thorough review [to] look at what we can fix,” Erick told reporters on Saturday, as quoted by Kompas.com.

“We will do a review of our subholding companies and the possibility of merging two firms,” he added, indicating these were part of the improvement measures.

The Attorney General’s Office (AGO) is investigating executives at Pertamina’s fuel trading, shipping and refining units, including Patra Niaga, KPI and PT Pertamina International Shipping.

Read also: AGO names suspects in Pertamina fuel import scandal

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The Assistant AGO for Extraordinary Crimes has named two president directors and four senior executives of Pertamina subsidiaries as suspects in the case, as well as three individuals from private oil and gas shipping companies.

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