President Prabowo Orders Pertamina and Other SOEs to Streamline Subsidiary Layers
President Prabowo Subianto received the President Director of PT Pertamina (Persero), Simon A. Mantiri, at his residence in Hambalang, Bogor Regency, West Java, on Sunday (9/8/2026). During the meeting, they discussed the implementation of the mandatory B50 programme, or 50% biodiesel, as well as the reduction of subsidiaries and sub-subsidiaries of the state-owned oil and gas company.
The meeting was also attended by Head of the State Intelligence Agency M. Herindra and Minister of Defence Sjafrie Sjamsoeddin.
In a written statement, Cabinet Secretary Teddy Indra Wijaya said that Simon reported on the progress of the B50 implementation, which was launched by President Prabowo in July. The programme is one of the government’s measures to strengthen national energy independence and security by increasing the use of domestic energy sources.
“The Pertamina CEO reported on the progress of the Mandatory B50 Programme (50% Biodiesel), which was launched by President Prabowo last July, as well as infrastructure readiness in the preparatory stages for the government’s bioethanol mandate,” said Teddy, quoting the official statement.
In addition to discussing the energy security agenda, the President also provided directives regarding the improvement of state-owned enterprise governance. The Head of State ordered a reduction in organisational layers as well as subsidiaries and sub-subsidiaries at Pertamina, PLN, and other SOEs.
“During the meeting, President Prabowo also ordered the reduction of layers and subsidiaries and sub-subsidiaries at Pertamina, PLN, and other SOEs,” wrote the Cabinet Secretary.
The simplification of the structure is aimed at creating SOEs that are more agile and productive. With a shorter bureaucratic chain, the decision-making process is expected to be faster while maintaining the efficiency of state-owned companies.
“The streamlining is intended to make decision-making faster, increase productivity, and better maintain the efficiency of all SOEs,” he concluded.