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Indonesian energy company Pertamina merges refinery, shipping and retail operations

Simon Aloysius Mantiri, CEO of Indonesian state energy company PT Pertamina, said that the firm will combine its refinery, retail and shipping units in order to improve its efficiency within its core business.

Mantiri said to a parliamentary panel overseeing state-owned companies that "we will perform a downstream integration by merging operations of Pertamina Patra Niaga and Kilang Pertamina Internasional, which we aim to complete by the end 2025."

He said that "all these steps were taken to protect the reputation of our company and increase the trust among stakeholders."

The Indonesia Attorney General's Office has launched an investigation into Pertamina, with several of its former executives being named as suspects. This probe is centered on alleged corruption between 2018 and 2023.

Mantiri said that Pertamina’s non-core businesses will be merged into similar state companies. He said that Pertamina was in talks with Garuda Indonesia about merging its airline Pelita Air and Garuda.

The government has long planned to merge the airlines.

(source: Reuters)