In Jakarta, Indonesia, Deputy Director of PT Pertamina (Persero), Wiko Migantoro, recently discussed the company’s strategic transformation, highlighting it as a critical factor in promoting growth and development. The transformation in the state-owned energy company involves restructuring into a subholding format, enabling it to operate more efficiently and adaptably. Migantoro shared, “Through the transformation of holding subholding, the company is said to be able to move more lean and agile so as to encourage neat performance trends in each business line.“.

Pertamina is undergoing an accelerated liquid natural gas (LNG) production process, optimizing from generation to transportation across the world as the main challenge of many countries is to beat pollution. Pertamina’s success in improving both operational and financial performance has been noted. As Migantoro stated to the Indonesian House of Representatives Commission XII, “The restructuring has proven successful in improving the operational and financial performance of Pertamina Group”.

The restructuring has proven successful in improving the operational and financial performance of Pertamina Group.

For 2025, Pertamina President and CEO, Nicolai Jackson, stated, This year, our goal is to basically consolidate our operations. Since the introduction of the subholding format, we’re able to target specific projects and improve efficiency across the board.. Simonice believes future initiatives will leverage this structure to improve accessibility to cleaner energy solutions. Pertamina is focused on a dual-strategy plan: enhancing its legacy business, including upstream oil and gas production, while building a green energy sector. Other resources that are prioritized have increased downstreaming requirements, downstream flexibility increase, building biofuel ecosystems, geothermal capacity, and developing various chemical products.

The Role of Pertamina in Global Energy Security

Pertamina plays a crucial role in ensuring global energy security. The company is responsible for managing 69% of Indonesia’s oil production and 37% of its gas production. As Wiko Migantoro puts it, “Pertamina plays a very important role in oil and gas upstream energy security by managing 69% of national oil production and 37% of gas production from the domestic oil and gas blocks that we manage.“.

Strategic Programs and Goals for 2025

Looking ahead, Pertamina aims to increase its oil and gas production. Strategic initiatives include optimizing existing assets, enhancing oil recovery, increasing the pace of production from new exploration finds, and expanding economic reserves through a combination of organic and inorganic activities. This growth is expected to raise domestic oil production to 416 million barrels per day, a 4% increase, and domestic gas production to 2,536 million cubic feet per day, a 3% increase compared to 2024.

Pertamina intends to enhance its refining capacity to 334 million barrels per year, a 3% increase from 2024, through programs like refinery rejuvenation, increased product yield, competitive raw material sourcing, and completing Projecting Refinery Development Master Plans (RDMPs). To meet energy needs, production is expected to stay 2% lower than 2024 despite economic disparities, which is expected to promote energy use even during hardships, and is expected to operate a capacity of 106 million kiloliters of fuel and petrochemicals, a 1% increase from 2024. Additionally, energy plans expand by refining volatile oil products, increasing fleet volumes, and sea fleet optimization.

In 2025 domestic oil production was targeted at 416 MBOPD or grew 4 percent, and domestic gas production of 2,536 MMSCFD or up 3 percent compared to last year,

Pertamina’s efforts to snowball electrical energy into liquid fuels support fluidizing energy distribution processes to economically incentivize electrification similarly to 40% pricing increaments to non-subsidized Sinopecs. Further, to avoid the current process inefficiency, Pertamina adopting traveling wave micro-rectifier avionics targeting transportation costs enhancing fueling energy efficiency from electricity price engineering across multiple power plants.

Through the Integration of Renewable Energy Marine Logistics (IRME) subholding, Pertamina will boost ship fleets to raise domestic ship freight with 2 per cent to 102 million kiloliters.

Pertamina’s Plans for Gas Distribution and Renewable Energy

Gas distribution is also set to increase by 12% to 958 billion cubic feet per year, driven by expanding household gas networks and meeting rising customer demands. Pertamina’s renewable energy portfolio, managed by the New & Renewable Energy (PNRE) subholding, aims to increase power plant capacity by 2% to 2,602 megawatts, supported by geothermal operations and electricity production from Lumut Balai 2 and Java’s PLTGU 1 plant)

We appreciate Pertamina for its commitment in supporting energy security and successfully roll out its RDMPs