Pertamina Completes Streamlining of 31 Subsidiaries

PT Pertamina (Persero), Indonesia's state-owned oil and gas company, has completed the streamlining of 31 subsidiaries as part of its ongoing transformation efforts. This initiative is aligned with the government's aspirations and aims to enhance national energy resilience, improve public services, and create greater economic value, according to Agung Wicaksono, the Director of Transformation and Business Sustainability at Pertamina.

The streamlining process, which is set to continue until the end of the first semester of 2026, involves a series of strategic actions including mergers, divestments of non-core businesses, and the liquidation of dormant entities, particularly in the upstream oil and gas sector. Agung emphasized that even though these dormant entities have not incurred operational costs or salaries, their liquidation is part of an effort to tidy up the Pertamina Group's structure.

“This streamlining is a strategic priority for Pertamina, designed to sharpen our focus on core businesses and enhance competitiveness, thereby creating sustainable value.”Agung Wicaksono, Director of Transformation and Business Sustainability at Pertamina

“This streamlining is a strategic priority for Pertamina, designed to sharpen our focus on core businesses and enhance competitiveness, thereby creating sustainable value,” Agung stated in a press release. The program is also seen as a response to the directives outlined in Presidential Instruction No. 7 of 2026 regarding the acceleration of state-owned enterprise restructuring.

“We are committed to ensuring that every process and decision made during this streamlining adheres to good corporate governance principles.”Muhammad Baron, Vice President of Corporate Communication at Pertamina

Pertamina's Vice President of Corporate Communication, Muhammad Baron, noted that the company is committed to ensuring that every process and decision made during this streamlining adheres to good corporate governance principles, comprehensive risk management, and compliance with applicable laws. He also highlighted the importance of support from various cross-sector agencies, including the Attorney General's Office (APH) and auditors, in reinforcing Pertamina's commitment to restructuring its subsidiaries.

Baron expressed gratitude for the support and input received to ensure that the streamlining program is executed correctly and achieves the targeted value creation. Pertamina is also focused on aligning its operations with Environmental, Social, and Governance (ESG) principles, which are integral to its transformation strategy aimed at supporting Indonesia's goal of reaching net-zero emissions by 2060.