BP BUMN Targets Streamlining Pupuk Indonesia Entities from 57 to 17

The Head of the State-Owned Enterprise Supervisory Board (BP BUMN) and concurrently Chief Operating Officer (COO) of Danantara, Dony Oskaria, together with Pupuk Indonesia, is targeting a reduction in the Pupuk Indonesia Group’s business entities from 57 to 17 by the end of 2026. “The simplification of entities will strengthen business focus and improve corporate management effectiveness,” Dony said in an official statement received in Jakarta on Wednesday. The transformation will also establish a more focused business structure through three main Sub-Holdings, namely Agrichemical, Industrial Chemical and Clean Ammonia, supported by Feedstock Co. as the manager of strategic raw material supply. Dony held a meeting with the Board of Directors of PT Pupuk Indonesia (Persero) to discuss progress on the implementation of streamlining and business transformation at Pupuk Indonesia Group. The discussion focused on accelerating business portfolio restructuring, simplifying the corporate structure, strengthening focus on the core business, and forming a more integrated business ecosystem. The measure is part of efforts to strengthen the company’s business foundation so that it is more adaptive to industry changes whilst being able to create sustainable added value. Through the new structure, Pupuk Indonesia is expected to improve operational efficiency, strengthen synergy among business entities, and optimise the management of company assets and resources. The presence of three main Sub-Holdings will also clarify the development focus of each business line, thereby supporting more targeted and sustainable business growth. In addition to improving efficiency, this transformation is expected to strengthen Pupuk Indonesia’s competitiveness in the fertiliser and petrochemical sectors, whilst opening up new business development opportunities in line with future industrial needs. The support of Feedstock Co. as manager of strategic raw material supply is also a crucial element in ensuring supply chain integration and the continuity of company operations. The transformation being carried out by Pupuk Indonesia aligns with the major agenda of restructuring and strengthening state-owned enterprises, which is continuously driven by BP BUMN together with Danantara. Through structure simplification and a sharper business focus, the company is expected to become a leaner, more agile and competitive organisation, whilst strengthening its contribution to supporting national food security and domestic industrial development.