Restructured Pertamina targets revenue of US$93bil in 2024

The Pertamina headquarters in Central Jakarta is pictured in this undated photo. - Courtesy of Pertamina

JAKARTA (The Jakarta Post): Major restructuring completed recently at Pertamina is expected to help the state-owned energy giant achieve US$93bil in revenue and $21bil in net profit within three years.

State-Owned Enterprises (SOEs) Minister Erick Thohir said given that the company was aiming for a valuation of $100 billion in 2024, booking $93 billion in revenue was not an impossible task.

“I think it is possible to achieve the target,” he said in an interview with CNBC Indonesia on Thursday (Sept 16).

Fajriyah Usman, Pertamina’s acting senior vice president of corporate communications and investor relations, said the creation of six subholding companies would allow Pertamina to improve its operational and financial performance, as well as optimise spending.

“Still, Pertamina faces challenges, including the energy transition from fossil fuels to new and renewable energy,” Fajriyah told The Jakarta Post on Friday.

Pertamina, which is Indonesia’s biggest oil and gas company, booked net profit of $182.81 million in the first half of the year, which marks a turnaround from a $767.92 million net loss in the same period last year, according to its latest financial report.

On Sept 10, the company officially inaugurated the six subholding companies: Upstream, Refining and Petrochemical, Commercial and Trading, Gas, Integrated Marine Logistics and Power and New Renewable Energy.

Part of a larger wave of restructuring carried out at Pertamina over the past year, the establishment of the six subholding companies is intended to accelerate the development of new and existing businesses and increase capacity and flexibility in partnerships and funding.

"This transformation is [also] in line with the global transition to renewable energy," Pertamina president director Nicke Widyawati said in a statement issued on Sept 10.

Meanwhile, capital market expert Teguh Hidayat said whether Pertamina would achieve its financial targets or not depended on how the company handled internal issues, so that the transition to the new structure could run smoothly.

“The challenge in moving forward after the restructuring process lies within Pertamina itself,” he told The Jakarta Post on Friday.

The impact of the subholding companies had yet to be assessed, he said, adding that he was optimistic that the restructuring would improve the company’s operational and financial performance.

“Any internal [issues] would have to be resolved immediately to achieve the [revenue] target,” Reforminer Institute executive director Komaidi Notonegoro told the Post on Friday.

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Indonesia , Pertamina , restructuring


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