Pertamina

Pertamina
Name	Pertamina
Type	State-owned enterprise
Industry	Oil and gas industry
Founded	10 December 1957
Founder	Government of Indonesia
Hq location	Jakarta
Products	Petroleum, natural gas, petrochemicals

Pertamina. It is a state-owned enterprise of Indonesia and a fully integrated oil and gas corporation, playing a dominant role in the nation's energy security. The company is involved in a wide spectrum of activities from upstream exploration and production to downstream refining, marketing, and distribution. Its operations are critical to the Indonesian economy, and it is consistently ranked among the largest companies in Southeast Asia.

History

The company's origins trace back to the nationalization of Royal Dutch Shell assets in Indonesia following the Indonesian War of Independence. It was formally established in 1957 as **PT Pertamina** (Perusahaan Pertambangan Minyak dan Gas Bumi Negara) through the merger of several state oil entities. Under the leadership of figures like Ibnu Sutowo, it grew rapidly during the 1960s and 1970s, financing major infrastructure projects but also accumulating significant debt. A major financial crisis in 1975-1976 led to a government bailout and restructuring, bringing it under tighter control of the Ministry of Energy and Mineral Resources. The post-Suharto Reformasi era brought further changes, including the passing of the Oil and Gas Law No. 22 of 2001, which formally ended its monopoly and transformed it into a limited liability company.

Operations

Its upstream operations are conducted through direct participation and strategic partnerships with international oil companies like ExxonMobil, Chevron, and TotalEnergies in key areas such as the Mahakam Block and the Masela Block. The downstream segment includes a network of refineries, such as the Cilacap Refinery and the Balongan Refinery, though the country often requires imports of refined products to meet demand. It also manages an extensive retail network under the **Pertamina** brand, operates liquefied natural gas facilities like Tangguh LNG, and is expanding into geothermal energy through subsidiaries like **Pertamina Geothermal Energy**, leveraging resources in areas like Kamojang.

Corporate structure

The company operates under the supervision of the Ministry of State-Owned Enterprises and the Ministry of Energy and Mineral Resources. Its business is organized into several key subsidiaries and holding groups, including **Pertamina Hulu Energi** for upstream activities, **Pertamina Patra Niaga** for downstream marketing and trading, and **Pertamina Gas Negara** for midstream gas transmission. Other significant units include **Pertamina Lubricants** and **Pertamina International Shipping**. The company is led by a President Director and Board of Commissioners appointed by the Government of Indonesia.

Financial performance

As a major contributor to state revenues, its financial results are heavily influenced by global crude oil price fluctuations and domestic fuel subsidy policies. Revenues and profits typically see significant volatility, with strong performances during periods of high Brent Crude prices. The company regularly issues global bonds and sukuk to finance its capital expenditure programs, which are rated by agencies like Moody's and Fitch Ratings. Its assets include extensive oil reserves and gas reserves, as well as infrastructure like the Trans-Java pipeline.

Controversies and incidents

The company has been involved in numerous high-profile issues, including a major corruption scandal in the 1970s known as the **"Pertamina crisis"** which required a bailout from the Government of Indonesia. Environmental disasters, such as a 2019 oil spill in Karawang, West Java, have drawn criticism from groups like Walhi. It has also faced allegations of corruption in procurement processes, investigated by the Corruption Eradication Commission (KPK). Safety incidents include fatal fires at facilities like the Balongan Refinery and the **"Greenpeace"** protests against its environmental record. The management of subsidized fuel programs has also been a persistent source of political and social controversy.

See also

* List of oil exploration and production companies * Energy policy of Indonesia * Ministry of Energy and Mineral Resources (Indonesia) * Oil and Gas Law No. 22 of 2001 * State-owned enterprises of Indonesia

Category:State-owned companies of Indonesia Category:Oil and gas companies of Indonesia Category:Companies established in 1957 Category:Jakarta