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View all search resultsPertamina merges fuel, refining and shipping units to ‘improve efficiency’
Plans to merge Pertamina’s downstream subsidiaries have been in the works since early last year, after a corruption scandal over the alleged sale of lower-grade imported fuel as higher-octane products.
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Pertamina president director Simon Aloysius Mantiri (center) spoke to reporters at the sidelines of the Downstream Oil and Gas Regulatory Agency (BPH Migas) head and committee members' inauguration ceremony in Jakarta. (JP/Divya Karyza)
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tate-owned oil and gas company Pertamina has announced the merger of key downstream subsidiaries, which are fuel trading arm PT Pertamina Patra Niaga, refining unit PT Kilang Pertamina Internasional and shipping firm PT Pertamina International Shipping.
The consolidation, which was made official on Sunday, establishes Pertamina Patra Niaga as the transferee entity for the new subholding.
Pertamina president director Simon Aloysius Mantiri said the integration aims to improve operational efficiency, ensure national energy supply and strengthen the company’s competitiveness. He expects the merger to enable faster coordination, more effective decision-making and more efficient allocation of Pertamina’s capital and financial resources.
“Amid geopolitical shifts, energy transition demands and fierce global competition, Indonesia needs Pertamina to be agile, strong and integrated,” Simon said in a statement on Wednesday, stressing that the merger “will not disrupt services to the public, partners or employees.”
“Unifying refineries, distribution, logistics and marketing into a single system will eliminate redundancies, accelerate services and guarantee a reliable energy supply.”
Pertamina vice president of corporate communications Muhammad Baron said the merger is a strategic move to ensure national energy security. The consolidation, previously targeted for completion by the end of last year, is part of Pertamina’s effort to align its corporate strategy with the policy direction of the State-Owned Enterprises (SOEs) Regulatory Agency (BP BUMN).
Read also: Pertamina gears up to merge key business arms by year-end
