Pertamina Advances with Subsidiary Merger Plans

Consolidation Strategy Unveiled

PT Pertamina Patra Niaga (PPN) is moving forward with preparations for a potential merger with PT Pertamina International Shipping (PIS) and PT Kilang Pertamina Internasional (KPI), following directives from its holding company. The planned consolidation is expected to be finalized next year. According to Corporate Secretary Roberth MV Dumatubun, PPN is preparing operational readiness in parallel with the holding company's decision-making process.

Merger Structure Details

The consolidation involves a combination of merger and spin-off processes. The merger will involve KPI, while a portion of PIS will be spun off into PPN. Roberth explained that such corporate restructuring is common in business practices. The exact timing and final structure will be determined by the holding company.

Broader Business Consolidation Efforts

Pertamina is also conducting comprehensive business consolidation across four non-core sectors:

1. Healthcare: Consolidating Pertamina Bina Medica IHC's hospital business, currently under review by Danantara
2. Hospitality: Merging PT Patra Jasa's hotel business into PT Hotel Indonesia Natour (HIN)
3. Aviation: Consolidating Pelita Air Service (PAS) into Garuda Indonesia
4. Insurance: Consolidating various state-owned insurance companies under IFG as the holding company

These consolidation efforts aim to streamline operations and enhance efficiency across Pertamina's diverse business portfolio. The restructuring is part of a broader strategy to focus on core oil and gas business while optimizing non-core assets.