Pertamina, the Indonesian state-owned oil and natural gas corporation, is consolidating three of its subsidiaries – PT Pertamina Patra Niaga (PPN), PT Kilang Pertamina Internasional (KPI) and PT Pertamina International Shipping (PIS) – into a single downstream subholding. This move aims to streamline operations and bolster the company’s competitive position.
The integration process began on February 1, 2026, and is expected to be fully completed by October of the same year. Following the consolidation, the newly formed Subholding Downstream will be able to appoint its board of directors.
“They are working on the consolidation process, and consolidating a business isn’t easy; it takes time. By October, they will have needed 10 months to complete this process,” stated a company representative during the CNBC Indonesia Economic Outlook 2026 event in Jakarta on Tuesday, February 10, 2026.
SCROLL TO CONTINUE WITH CONTENT
In parallel with the consolidation, Pertamina plans to divest its non-oil and gas businesses throughout 2026. This includes units in aviation, hospitality, and insurance.
“So, alongside this consolidation process, we will be undertaking a parallel effort. Initially, this will involve DHC, hospitals, hotels, airlines, insurance, and other businesses,” the representative explained.
“Pertamina’s focus will be primarily on oil and gas, with non-oil and gas businesses no longer part of the company,” they added.
This strategic shift will allow Pertamina to concentrate on its core business of oil and gas. Other Indonesian state-owned enterprises are similarly expected to sharpen their focus on their respective areas of operation.
“we envision strong, independent state-owned companies – hospitals, hotels, insurance providers, oil and gas companies, and airlines – each operating with optimized business models,” the representative concluded.
(igo/hns)
