Pertamina's Streamlining Strategy Strengthens SOE Efficiency and Governance
PT Pertamina (Persero)’s move to reorganise its subsidiaries, or business streamlining, is considered a strategic step aligned with the transformation of State-Owned Enterprises (SOEs). The programme aims to strengthen efficiency, improve governance, and refocus the company on its core energy sector business.
Economist from the Adidaya Institute, Bramastyo B Prastowo, explained that streamlining is a crucial instrument to ensure SOEs optimally perform their two main functions: providing public services and generating dividends for the state. He noted that this step is not only being taken by Pertamina but is also a trend among other SOEs.
“The point is that streamlining is based on two inherent aspects of SOEs, namely generating dividends for the state and providing public services,” said Bramastyo, as quoted on Friday (14/8).
Bramastyo added that Pertamina’s position is highly strategic because the energy sector requires special attention from the government. The organisational restructuring is expected to suppress potential losses arising from ineffective institutional structures. From an institutional economics perspective, reducing management layers and unnecessary director/commissioner positions will make decision-making more rational and focused.
By the end of the first half of 2026, Pertamina recorded significant progress in its corporate structure arrangement programme. Pertamina’s Director of Business Transformation and Sustainability, Agung Wicaksono, confirmed that the liquidation of entities, including dormant entities in the upstream oil and gas sector, continues even if they have no operational burden or director salaries. This is done for the sake of group structure tidiness and to accelerate decision-making.
“The ultimate goal is to strengthen national energy resilience, provide better services to the public, and deliver greater added value to the national economy,” said Agung. He also mentioned that this step is in line with the aspirations of the government and Danantara.
In its implementation, Pertamina ensures that the entire streamlining process complies with the principles of Good Corporate Governance and risk management. Vice President of Corporate Communication at Pertamina, Muhammad Baron, stated that the process involves strict supervision from various external parties.
“The arrangement process involves law enforcement officials, auditors, Danantara, BP BUMN, and other relevant agencies. This support is important to ensure the programme achieves the targeted value creation without violating statutory provisions,” concluded Baron.