State energy company PT Pertamina has planned to merge the operations of three key subsidiaries − PT Pertamina Patra Niaga, PT Pertamina International Shipping, and PT Kilang Pertamina Internasional − as part of the strategy to improve efficiency and align with the direction set by the State sovereign wealth agencyBPI Danantara.

Pertamina President Director, Simon Aloysius Mantiri, confirmed the plan during a hearing with the House of Representatives’ Commission VI on Thursday, September 11, 2025, citing declining profits across the subsidiaries amid unfavorable global conditions.

"Global demand is falling, while refinery output is increasing, and many new refineries are being built. This has significantly narrowed refinery margins and affected our bottom line," Mantiri told legislators.

He said a merger is one of several initiatives under review to enhance operational effectiveness. While details remain under wraps, Mantiri hinted at the possibility of establishing a new entity that would consolidate the three subsidiaries.

“Yes, it could be a new company,” he said.

The integration, Mantiri added, is targeted for completion by the end of 2025 and is being treated as a top corporate priority. Pertamina is also conducting a broader business process optimization across all units to improve efficiency and effectiveness.

“These steps are crucial to maintaining corporate reputation and reinforcing stakeholder trust through strong policy advocacy and effective communication,” he said.

The plan has gained support from state-owned enterprises (SOEs) and Investment Commission VI of the House of Representatives. Deputy Commission VI Chairman Adisatrya Suryo Sulisto said the merger aligns with Pertamina’s strategic initiatives and Danantara’s broader SOE consolidation roadmap.

“The commission supports the operational merger of these subholdings as a realignment with Danantara’s investment strategy,” Adisatrya said as quoted in a statement on Friday, September 12, 2025.

Legislators also backed Pertamina’s efforts to consolidate non-core business units, urging the company to focus on its main pillars in oil, gas, and renewable energy.

Commission VI member Rivqy Abdul Halim praised the move as a strategic breakthrough, comparable to the proposed merger between state-owned airlines Pelita Air and Garuda Indonesia.

Pertamina’s diverse portfolio currently spans beyond oil and gas, including operations in healthcare and travel services.

Danantara, established earlier this year, is leading an effort to streamline Indonesia’s vast SOEs ecosystem. Chief Operating Officer Dony Oskaria said in June that the number of SOEs and subsidiaries would be trimmed from over 800 to around 200 to improve focus and performance.

“Returning SOEs to their core business will make them healthier and stronger,” Oskaria said.