One Year of Restructuring, Pertamina is More Lean and Agile

Jakarta, July 23, 2021 – The restructuring of the Pertamina Group within the framework of holding-subholding transformation continues. HR, the company's most essential component, is also a part of the restructuring process. It is the key to Pertamina's success in adapting to increasing dynamic business challenges.

HR Director of Pertamina, M Erry Sugiharto, says the company has done several things to accelerate restructuring. First, develop a change in management & communication plan guide. It contains a change in management steps, communication strategy, communication work plan, and engagement topics. 

Second, delivering cascading information to ensure the dissemination of information to all elements of workers. Third, engage stakeholders under the related Subholding. Fourth, communicate formally and informally to workers by involving their direct superiors and with guidance from Human Capital. And lastly, monitoring and reporting on its implementation periodically.

"The result is a lean and agile organization in structural and functional forms as well as a team-based implementation that has an impact on reducing layers in the organization," said Erry, Monday, July 19, 2021.

In addition, the transition creates an acceleration of decision-making in the development of existing and new businesses through the empowerment of subholding.

"With the change in the process model, we can also optimize the span of control from previously managing more than 120 subsidiaries directly to 12 core business subsidiaries and several portfolio subsidiaries so that it becomes more effective and optimal," he added.

Erry emphasized that by optimizing subholding, the organization also has a positive impact because it focuses on its respective business lines. Therefore, the organizational capabilities become stronger by accelerating development through a focused center of excellence. Career paths have also become broader and more diverse between holding sub holdings with 46 percent of top talent millennials.

In addition, the parenting model with strategic holding & active holding makes the holding role as the controlling holder in maintaining national energy security and the integrator in managing the inter-subholding business.

According to a survey conducted by the change management team, Pertamina workers are enthusiastic about supporting the company's transition in general.

"With this enthusiasm and support, I believe all Pertamina employees will give their best contribution in accelerating the process of adapting to smooth operations by using the new organizational pattern and company strategy," he said optimistically.**