Indonesian state energy firm Pertamina will merge the operations of its refinery, shipping and retail units to improve efficiency in its core business, CEO Simon Aloysius Mantiri said on Thursday.
"We will carry out a downstream integration, by merging the operations of Pertamina Patra Niaga, Kilang Pertamina Internasional and Pertamina International Shipping, which we are targeting to be completed by the end of 2025," Mantiri told a parliamentary committee overseeing state companies.
"All these steps are taken to safeguard the reputation of the company and strengthen the trust of the stakeholders," he said.
Pertamina has been under investigation by the Indonesia Attorney General's Office with a number of its former executives named as suspects in a probe into alleged corrupt activities between 2018 and 2023.
Mantiri added that Pertamina's non-core business will be merged with similar state companies. Pertamina has been in talks with flag carrier Garuda Indonesia to merge its airline Pelita Air with Garuda, he added.
The merger of the airlines has been a long-time plan of the government.
(Reporting by Fransiska Nangoy; Editing by Susan Fenton)