Pertamina CEO Discusses Merger Incentives with Purbaya

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January 9, 2026 | 11:19 pm

TEMPO.CO, Jakarta – Chief Executive Officer of Pertamina, Simon Aloysius Mantiri, met with Finance Minister Purbaya Yudhi Sadewa today at the Finance Ministry office in Central Jakarta. The meeting focused on incentives for the merger of three state-owned oil and gas subsidiaries.

Simon explained that the subsidiaries to be merged are PT Pertamina Patra Niaga, PT Kilang Pertamina Internasional (KPI), and PT Pertamina International Shipping (PIS). "The plan is to integrate our downstream business. So, we will merge Kilang Pertamina Internasional, Pertamina Patra Niaga, and Pertamina International Shipping," he said on Friday, January 9, 2026, as quoted from Antara.

He confirmed that topics discussed with the Finance Minister included incentives for the merger. However, Simon did not provide details on the specific form of incentives planned to facilitate the process. "Including [incentives]," he said.

Prior to this, Pertamina targeted the completion of the merger by January 1, 2026. However, the corporate action plan remains unfinished.

Pertamina's Director of Transformation and Business Sustainability, Agung Wicaksono, stated in mid-November 2025 that the company received guidance from Danantara Indonesia to integrate its downstream business, covering the commercial, refining, and logistics sectors.

This strategy to simplify operations was directed by President Prabowo Subianto to achieve energy self-sufficiency and reduce complexity. The goal is for Pertamina to focus on its core oil and gas business, from exploration to distribution, including renewable energy.

Furthermore, this strategy is expected to enhance competitiveness and decision-making efficiency. "Of course, the aim is to create greater added value for shareholders or to unlock value," Agung said on November 19, 2025.

Simon previously announced the merger plan during a meeting with the House of Representatives Commission VI on September 11, 2025. The merger addresses profit declines in each subsidiary caused by global conditions.

Meanwhile, refinery production increased due to new constructions. However, this impacted revenue as income failed to cover production costs.

Simon deemed the situation unfavorable if left unaddressed. "The refinery margins are getting smaller. With the margins shrinking, it will certainly have a less favorable impact on the company's bottom line, in overall consolidation," he said at the time.

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