Pertamina Streamlines 31 Subsidiaries as Indonesia's State Energy Giant Pushes Sweeping Overhaul

JAKARTA, Investortrust.id — PT Pertamina (Persero), Indonesia's state-owned energy company, has completed the restructuring of 31 subsidiaries and affiliated entities during the first half of 2026, marking one of the group's most significant organizational overhauls in recent years as it seeks to improve efficiency, strengthen governance, and reinforce national energy security.

The transformation, led by President Director Simon Aloysius Mantiri, is part of a broader business streamlining program that includes mergers, divestments of non-core assets, and the liquidation of inactive companies across the Pertamina Group.

Pertamina plays a central role in Indonesia's energy sector, spanning upstream oil and gas production, refining, fuel distribution, and renewable energy. A leaner corporate structure could improve capital allocation, speed up strategic decision-making, and enhance operational efficiency as the company navigates the country's energy transition while supporting domestic energy security.

The restructuring also aligns with the Indonesian government's broader effort to modernize state-owned enterprises and maximize the value of public assets through Danantara, the country's sovereign wealth fund and state investment management agency.

Agung Wicaksono, Pertamina's Director of Transformation and Business Sustainability, said business streamlining has become one of the company's highest strategic priorities.

"The ultimate objective is to strengthen national energy security, deliver better services to the public, and create greater value for Indonesia's economy," Agung said.

He said simplifying the group's organizational structure enables faster decision-making, greater operational efficiency, and stronger corporate governance.

The restructuring has focused on consolidating businesses through mergers, divesting non-core operations, and dissolving dormant upstream oil and gas entities that no longer conduct business.

Although these inactive subsidiaries no longer incurred operating expenses or executive compensation costs, Agung said the company decided to liquidate them to simplify Pertamina's corporate structure further.

According to Pertamina, the streamlining program has already strengthened the company's energy supply chain, improved operational efficiency, and reinforced its long-term business resilience.

The initiative also supports Presidential Instruction No. 7 of 2026, which accelerates the restructuring of Indonesia's state-owned enterprises and their subsidiaries.

Agung emphasized that the program extends beyond corporate transactions.

"This transformation is not limited to mergers or divestments," he said. "It is designed to enhance competitiveness, improve governance standards, and deliver better services to the public."

Muhammad Baron, Pertamina's Vice President of Corporate Communication, said the restructuring is being carried out under strict Good Corporate Governance (GCG) principles, supported by comprehensive risk management and full regulatory compliance.

Baron added that Pertamina has coordinated closely with law enforcement agencies, auditors, Danantara, the government's state asset management authorities, relevant ministries, regulators, and labor unions to ensure the restructuring remains transparent, accountable, and focused on long-term value creation.

He said stakeholder support has been instrumental in ensuring the program not only follows proper governance procedures but also achieves its intended economic benefits.