Flooring Guide by Cinvex JAKARTA – PT Pertamina (Persero), Indonesia’s state-owned energy giant, has made a pivotal decision to merge three of its subsidiaries. This move comes as a strategic shift, as these entities were previously slated for an initial public offering (IPO) by the end of 2025.
Among the subsidiaries widely rumored for an IPO this year were PT Pertamina International Shipping (PIS) and PT Pertamina Hulu Energi (PHE). However, in February 2025, PIS management indicated they were awaiting directives from shareholders, signaling a potential change in plans for these key Pertamina operations.
Pertamina already boasts a portfolio of publicly listed subsidiaries on the Indonesia Stock Exchange, including PT Perusahaan Gas Negara Tbk. (PGAS), also known as PGN; PT Elnusa Tbk. (ELSA); PT Pertamina Geothermal Energy Tbk. (PGEO); and PT Asuransi Tugu Pratama Indonesia Tbk. (TUGU).
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Perusahaan Gas Negara Tbk. – TradingView
In a recent announcement, Pertamina’s President Director, Simon Aloysius Mantiri, confirmed the decision to consolidate three specific subsidiaries. These entities are PT Pertamina Patra Niaga, PT Kilang Pertamina Internasional (KPI), and PT Pertamina International Shipping (PIS). This significant merger of distribution companies within the Pertamina conglomerate is targeted for completion by January 1, 2026.
“We are aiming for the merger to be finalized by January 1, 2026,” Simon stated, as quoted by Antara on Tuesday, November 11, 2025.
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Simon further elaborated that the merger plans for these three subsidiaries have reached the finalization stage and will be submitted to Danantara for approval. This reporting process is crucial to ensure the consolidation aligns with regulatory frameworks and secures necessary endorsements.
He emphasized that the integration of these three Pertamina subsidiaries is currently the company’s top priority. This strategic step is in alignment with the direction set by the Badan Pengelola Investasi Daya Anagata Nusantara (Danantara). The decision to merge was primarily driven by evolving global dynamics that have led to a decline in Pertamina’s profits. Specifically, global conditions have resulted in decreased demand for oil, while refinery production has simultaneously increased due to the proliferation of new refining facilities.
To navigate these challenging market conditions and ensure more effective operations, Pertamina has, therefore, made the decisive move to combine Kilang Pertamina Internasional, Pertamina International Shipping, and Pertamina Patra Niaga, streamlining their functions and enhancing overall efficiency.
Beyond this critical merger, Simon also outlined plans to optimize business processes across all of Pertamina’s business lines. This comprehensive optimization aims to ensure every activity operates with maximum efficiency and effectiveness. Ultimately, Pertamina, Simon affirmed, will sharpen its focus on its core oil and gas (migas) business, alongside expanding its commitment to new and renewable energy initiatives.
“Equally important, all these measures are being undertaken to uphold and strengthen the company’s reputation,” he concluded, underscoring the broader strategic imperative behind Pertamina’s transformation.
Summary
Indonesia’s state-owned energy giant, Pertamina, has decided to merge three subsidiaries: PT Pertamina Patra Niaga, PT Kilang Pertamina Internasional (KPI), and PT Pertamina International Shipping (PIS). This strategic move replaces earlier plans for an Initial Public Offering (IPO) of some subsidiaries, with the consolidation targeted for completion by January 1, 2026. Pertamina’s President Director, Simon Aloysius Mantiri, confirmed that these merger plans are in the finalization stage and require approval from Danantara.
The primary driver for this merger is evolving global dynamics, which have led to a decline in Pertamina’s profits due to decreased oil demand and increased refinery production. By combining these entities, Pertamina aims to streamline operations, enhance efficiency, and optimize all business processes. The company also plans to sharpen its focus on core oil and gas while expanding into new and renewable energy, all to strengthen its reputation.