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Jakarta Post

Downstream still bad business for Pertamina 

  • Stefanno Reinard Sulaiman¬†

    The Jakarta Post

PREMIUM
Jakarta   /   Fri, June 7, 2019   /  07:24 am
The Jakarta Post Image
Pertamina president director Nicke Widyawati (front) fills up a car in Tasikmalaya, West Java, on Feb. 12, while marketing director Masud Khamid (right, behind) looks on. (Antara/Adeng Bustomi)

Without the government subsidy and compensation, state-owned energy holding company Pertamina will only book a small profit or even a loss in 2018, in contrast with the announcement of a US$2.53 billion net profit.  According to the firm’s financial report in 2018, the government has a debt amounting to $3.1 billion to Pertamina to not increase the price of Kerosene, Solar and Premium despite the global oil price moving to around $60 per barrel. The debt was accounted as a receivable that subsequently helped to lift Pertamina’s overall financial performance in 2018, with its net profit in that year down from the previous period at $2.54 billion.  Although it may help beautify the 2018 financial report, the actual payment from the government is “still in process”, said Pertamina finance director P...