SOE Regulatory Agency Aims to Reduce Pupuk Indonesia Entities from 57 to 17
The Head of the State-Owned Enterprise Regulatory Agency (BP BUMN) and Chief Operating Officer of Danantara, Dony Oskaria, alongside Pupuk Indonesia, aims to reduce the number of business entities within the Pupuk Indonesia Group from 5lar 57 entities to 17 entities by the end of 2026.
“The simplification of entities will strengthen business focus and increase the effectiveness of company management,” Dony stated in an official statement received in Jakarta on Wednesday.
This transformation will establish 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.
Dony held a meeting with the Board of Directors of PT Pupuk Indonesia (Persero) to discuss the progress of the streamlining and business transformation of the Pupuk Indonesia Group. The discussions focused on accelerating the arrangement of the business portfolio, simplifying the corporate structure, strengthening the focus on core businesses, and creating a more integrated business ecosystem.
This move is part of an effort to strengthen the company’s business foundation to be more adaptive to industrial changes while being able to create sustainable added value. Through the new structure, Pupuk Indonesia is expected to increase operational efficiency, strengthen synergy between business entities, and optimise the management of company assets and resources.
The presence of the three main sub-holdings will also clarify the development focus of each business line, supporting more directed and sustainable business growth. In addition to increasing efficiency, this transformation is expected to strengthen Pupuk Indonesia’s competitiveness in the fertiliser and petrochemical sectors, while opening opportunities for new business developments aligned with future industrial needs.
The support of the Feedstock Co. as the manager of strategic raw material supplies is also a vital element in ensuring supply chain integration and the continuity of company operations. The transformation being implemented by Pupuk Indonesia is in line with the broader agenda of restructuring and strengthening State-Owned Enterprises (SOEs) being driven by BP BUMN and Danantara. Through structural simplification and a strengthened business focus, the company is expected to become a leaner, more agile, and more competitive organisation, while strengthening its contribution to supporting national food security and domestic industrial development.