Pertamina to Merge Three Subsidiaries for Enhanced Efficiency

Strategic Restructuring for Global Challenges

PT Pertamina (Persero), Indonesia's state-owned energy giant, is undertaking a significant corporate restructuring by merging three of its key subsidiaries: PT Pertamina Patra Niaga, PT Kilang Pertamina Internasional (KPI), and PT Pertamina International Shipping (PIS). This strategic move, announced by Pertamina's CEO Simon Aloysius Mantiri, is designed to enhance operational efficiency and improve the company's adaptability to an increasingly complex global energy landscape.

Key Objectives of the Merger

The merger is primarily aimed at streamlining business operations and creating a more agile organizational structure. By integrating these three critical subsidiaries, Pertamina expects to achieve several key benefits:

1. Improved decision-making processes through reduced complexity and enhanced coordination
2. Enhanced operational efficiency through consolidated management of supply chain and distribution networks
3. Better adaptation to global challenges through a more robust and flexible corporate structure

Business Impact and Implementation Timeline

The merged entity will have a more comprehensive control over the entire value chain, from refining to distribution and shipping of petroleum products. This integration is particularly significant for Indonesia's energy security as it will improve the coordination between different segments of the supply chain.

Pertamina plans to finalize the merger process by January 1, 2026. While the final approval rests with Danantara, the state-owned enterprise holding company, Pertamina is currently in the final stages of preparation. The new structure is expected to position the company more competitively in the global energy market while maintaining its crucial role in Indonesia's energy supply chain.