After the Constitutional Court's Decision, Pertamina Ensures Company Restructuring Will Advance To Reach US$ 100 Billion Target

Jakarta, October 1, 2021 - After completing the legal process, PT Pertamina (Persero) ensures that the company's restructuring will continue to realize shareholders' aspiration to make Pertamina a leading global energy company with a market value of USD 100 billion. 

Pertamina's determination to continue organization and business transformation are stronger with the Constitutional Court (MK) Decision on the Judicial Review case Number 61/PUU-XVIII/2020. It confirms that the restructuring of the Pertamina Group into Holding & Subholding does not violate the constitution and does not eliminate state control over Pertamina as SOE.

Acting Senior Vice President Corporate Communication & Investor Relations of Pertamina, Fajriyah Usman, explained that in line with the transformation policy of the Ministry of SOEs, since July 2020 Pertamina has formed Holding and Subholding. In September 2021, all Subholdings have been legally authorized. Through this restructuring, Pertamina will accelerate in developing its business while continuing to carry out the Government's mandate in providing energy according to the principles of Availability, Affordability, Accessibility, Acceptability, and Sustainability (4A & 1S).

"We will continue to provide the best for the nation and state. Pertamina is also fully compliant and obedient to the provisions and legal processes, both those that have been decided in the Constitutional Court and other courts," said Fajriyah in Jakarta (30/9). 

Fajriyah added corporate restructuring can provide benefits in improving Pertamina Group's performance. With the existence of Subholding, all Subsidiaries move according to the scope, opportunities, and business challenges faced. Therefore, they can compete at a global level.

"Until the first Semester of 2021, Subholding has shown positive operational performance while strengthening Pertamina's role as an oil and gas holding tasked with maintaining national energy resilience, independence, and sovereignty," she added.

In addition, she continued, the restructuring has also pushed the company's operations to be more integrated across all business lines from upstream to downstream, making it more effective and efficient. It is evidenced by the efficiency achievements that have been recorded by the company, such as the ability to perform cost optimization and reduce inventory costs, both in terms of value and volume.

"All subsidiaries within the Pertamina Group increase synergies in business and operational integration, so they can optimize existing resources and provide greater benefits," said Fajriyah.**