The Ministry of State-Owned Enterprises (SOEs) has etimated that profits of Indonesian SOE in 2024 will experience a slight decline due to the narrowing of crack spread at State energy company PT Pertamina’s oil refinery, which has an impact on decreased profitability of the energy sector.
“Our prediction of our profitability in 2024 has decreased slightly due to the narrowing crack spread at Pertamina’s refineries,” Kartika, who is popularly known as Tiko, spoke at the Mandiri Investment Forum (MIF) 2025 event held in Jakarta, on Tuesday, February 11, 2025.
The crack spread itself is the difference between the price of crude oil and marketed petroleum derivative products. When this difference narrows, the profits obtained from the oil processing process will decrease.
Although profits are predicted to decline, Tiko emphasized that SOEs are not only oriented towards profit alone. The main role of SOEs also includes broad public services and being the driving force of the national industry.
“It should be remembered that Indonesian SOE not only creates value and contributes profit to the government, but also provides massive public services and acts as a pioneer of industry in Indonesia,” he cited.
Although profitability is predicted to weaken, Tiko revealed that the compound annual growth rate in SOEs’revenue remains stable at 6 percent. In addition, total assets and equity of SOEs show healthy growth.
He also revealed that SOEs’ return on assets (ROA) increased by 3 percent while return on equity (ROE) grew by 10 percent throughout 2024. According to him, this achievement was the result of the first phase of SOEstransformation which had been ongoing since 2019-2024.
