Pupuk Indonesia to Cut 42 Subsidiaries by 2027

The State-Owned Enterprise (BUMN) Regulatory Agency has announced that PT Pupuk Indonesia (Persero) will reduce its number of business entities by 42. According to an official announcement on the @bumn.id Instagram account, this reduction will be implemented in stages.

From a total of 57 entities projected for 2025, Pupuk Indonesia aims to simplify its structure to 17 entities by the end of 2026. The downsizing will continue through 2027, eventually reaching a total of 15 entities.

This transformation is designed to create a more focused business structure through three main sub-holdings: Agrichemical, Industrial Chemical, and Clean Ammonia, supported by a Feedstock Co. which will manage strategic raw material supplies.

The Head of the BUMN Regulatory Agency and COO of Danantara Indonesia, Dony Oskaria, held a meeting with Pupuk Indonesia’s Director of Portfolio and Business Development, Jamsaton Nababan, to discuss the progress of the streamlining and business transformation of the Pupuk Indonesia Group.

Discussions focused on accelerating the arrangement of the business portfolio, simplifying the corporate structure, strengthening the focus on core businesses, and establishing a more integrated business ecosystem.

“Through this new structure, Pupuk Indonesia is expected to be able to increase operational efficiency, strengthen the competitiveness of the national fertiliser and petrochemical industries, and support healthier and more sustainable corporate growth,” the @bumn.id account stated.