Economist Assesses Pertamina Streamlining as Strengthening Efficiency and Business Focus
Economist Bramastyo B Prastowo from the Adidaya Institute has assessed that the business streamlining programme being undertaken by PT Pertamina (Persero) is in line with the transformation needs of state-owned enterprises (BUMN) to strengthen efficiency, governance, and focus on core business. “The point is that streamlining is based on two things inherent to BUMN, namely generating dividends for the state and providing public services,” said Bramastyo in a statement received in Jakarta.
According to him, Pertamina’s position is strategic because the energy sector requires government protection and attention. Therefore, Pertamina’s streamlining is directed at increasing its contribution to the state while suppressing potential losses that could arise from an ineffective organisational structure. “What the government is doing through this streamlining is not only efficiency and effectiveness from the revenue side for the state, but also reducing potential losses that are estimated to arise because the institutional framework is still considered ineffective,” said Bram.
From an economic institution perspective, Bramastyo assessed that streamlining can improve the principal-agent relationship between shareholders and management. By the end of the first half of 2026, Pertamina had completed business streamlining for 31 entities. Pertamina’s Director of Business Transformation and Sustainability, Agung Wicaksono, said this step is part of a continuous transformation aligned with the aspirations of the government and the Danantara investment authority.
“The ultimate goal is to strengthen national energy security, provide better services to the public, and deliver greater added value for the national economy,” said Agung. According to Agung, the programme is carried out through mergers, divestment of non-core businesses, and the liquidation of dormant entities, particularly in the upstream oil and gas sector. This restructuring is intended to streamline the Pertamina Group structure, accelerate decision-making, increase efficiency, and strengthen governance.
“Although these dormant upstream oil and gas entities have had no expenditure, whether for operations or directors’ and commissioners’ salaries, we still liquidated them as part of the effort to tidy up the Pertamina Group structure,” he said. Agung added that streamlining does not stop at corporate actions but continues with transformation to strengthen excellence, governance, and the quality of public services. This step is also part of implementing the President’s directive through Presidential Instruction No. 7 of 2026 concerning the acceleration of the restructuring programme for BUMN and/or BUMN subsidiaries.