Pertamina streamlines 31 entities, aligning with government restructuring goals

State-owned energy giant Pertamina has significantly restructured its operations, streamlining 31 business entities by the first half of 2026. This move aligns with President Prabowo Subianto's broader policy to consolidate and enhance the efficiency of state-owned enterprises (SOEs).

The company's efforts are designed to improve productivity and value creation, as previously emphasized by President Prabowo in August 2026. The government had set a target to reduce the total number of SOEs to 300 by the end of 2026. Pertamina's program involves restructuring its subsidiaries through mergers, divesting businesses outside its core operations, and liquidating inactive companies.

Economist Imron Mawardi from Airlangga University supports Pertamina's actions, stating they are in line with the government's mandate. He believes the streamlining will not disrupt the fuel supply chain, as the affected entities are not directly involved in core businesses. Instead, Mawardi anticipates that the consolidation will lead to a more efficient and robust fuel supply network.

Mawardi explained that mergers can reduce overlapping business activities and increase the scale of operations. He illustrated this by noting that merging subsidiaries with redundant management structures, such as multiple directors and commissioners, can significantly simplify the organizational hierarchy. Divesting non-core assets is also expected to yield financial benefits, while liquidating dormant companies will focus on asset utilization.