Pertamina Assures the Restructuration Transition Period Run Smoothly
Jakarta, October 25, 2020 – PT Pertamina (Persero) assures that its restructuring process is done according to business customs. Currently, the restructuring process is still in transition to ensure Pertamina and the entire business group are ready for the next process.
SVP of Corporate Communication & Investor Relations of Pertamina, Agus Suprijanto, explained that Pertamina restructuring is a mandate for shareholders that must be realized. In the process, management always considers strategic aspects, procedures, and handling of all company assets, including workers following the applicable legal regulations. This process requires a transition that is well managed, prudent, and professional.
"Pertamina's corporate restructuring has become a common practice in efforts to improve company performance and efficiency, as has happened in various other global energy companies. When restructuring, the company also goes through a transition period," said Agus.
The legal standing related to the formation of the Holding and Business Group is also clear. Meanwhile, regarding requests for legal opinions from legal institutions, Agus said that Jamdatun's Legal Opinion was requested to process the restructuring implementation process to remain under the applicable regulations.
"From the start, all processes leading to restructuring have been ensured within the corridors of GCG and following the applicable regulations," explained Agus.
Regarding assets, Agus ensured that until now, there had been no transfer of Pertamina's assets to other business groups or subsidiaries. The management status of the work area of the upstream subsidiary that has contracted with SKK Migas remains the same. Regionalization is carried out to coordinate and ensure that upstream oil and gas operations are integrated so that operations will be more efficient.
"This transitional period has not been followed by a transaction that has a tax impact. It is precisely the pre-conditions that are being carried out now, in order to find the best restructuring process configuration to minimize tax risks that may arise later," he continued.
Agus also denied accusations that Pertamina's restructuring had hampered operations and strategic projects. According to him, all business processes and operations from upstream to downstream have been running well. Intensive communication is carried out so that all functions and employees continue to work professionally with a high commitment to support the company's targets. The community can still enjoy fuel and LPG services well because the production and distribution processes carried out by all Pertamina's functions and subsidiaries remain running smoothly. As of September, the upstream oil and gas activities also managed to record oil and gas production of 868 thousand BOEPD, still in line with the company's target set.
"This shows that Pertamina's business processes are fine, not random. In terms of work procedures, management has also issued regulations governing workflow and authority during the transition period," he added.
Regarding refinery revitalization and construction, added Agus, until now the Refinery Development Master Plan and Grass Root Refinery (RDMP/GRR) projects are still running according to the predetermined stages. In general, all projects showed clear progress and went well with the management's monitoring.
"The restructuring process is carried out in stages. In the current transition period, we ensure that all preparations for restructuring have been prepared. We focus on the restructuring to go according to plan and have a positive impact in supporting the achievement of Pertamina's goal of becoming the leading global energy company," he said.**