20 November 2019 (closed)
USD/IDR (14,100) -12.00 -0.09%
EUR/IDR (15,600) -30.21 -0.19%
Jakarta Composite Index (6,155.11) +3.02 +0.05%
Pertamina is Indonesia's largest state-owned enterprise (SOE) in terms of revenue and income. The company is active in the upstream and downstream sectors of the oil and gas industry. The upstream sector covers the exploration and production of oil, gas and geothermal energy, while its downstream activities cover processing, marketing, trading and shipping.
|Industry Sub Sector||Oil & Gas|
|Established||10 December 1957|
|Company Type||State-owned Enterprise|
|Key Subsidiaries||Pertamina EP
Pertamina Geothermal Energy
Pertamina EP Cepu
Pertamina Hulu Energi
Pertamina Drilling Services Indonesia
The company was established in 1957 under the name of Permina but changed its name to Pertamina after it merged with Pertamin in 1968. Pertamina became a huge source of revenue for the New Order government of President Suharto in the 1970s, thus enabling large investments in the country's infrastructure and successful poverty reduction programs. Mismanagement and corruption, however, almost led to its bankruptcy in 1975.
The company produces a multitude of commodities such as fuel, kerosene, LPG, LNG, and petrochemicals. It is the second-largest crude oil producer in Indonesia after Chevron Pacific Indonesia (which is the wholly owned subsidiary of America's Chevron, one of the world's leading integrated energy companies). Currently, Pertamina owns six oil refineries in Indonesia that have a combined production capacity of one million barrels of oil per day (bpd).
Pertamina is a state-owned enterprise that is fully owned by the Indonesian government and thus does not trade shares on the Indonesia stock exchange (IDX).
For its upstream activities (both national and international) Pertamina conducts its own operations or engages in partnerships in the form of joint operations with Joint Operating Bodies (JOB), Joint Operating Contracts (JOC) and Technical Assistance Contracts (TAC). Besides the exploration, production and transmission of oil and gas, Pertamina is also increasingly tapping Indonesia's coalbed methane and geothermal potential. For this reason the company changed the description of its core business from an 'oil and gas company' to an 'energy company'.
The decline in Indonesia's oil output in recent years is also reflected in Pertamina's performance. Although the company - through its subsidiary Pertamina EP - manages over 141,000 square kilometers of oil and gas field concessions throughout the country, its production-per-square-kilometer ratio is low compared to the other oil companies that are active in Indonesia, indicating Pertamina is not optimally exploiting its oil reserves.
To re-establish its name as a (global) influential oil & gas player, Pertamina has shifted its focus to stimulate growth through large capital expenditure over the next years. The company seeks to acquire exploration rights for new overseas oil blocks in the Middle East, Thailand, Burma and Vietnam (it already has blocks in Sudan, Qatar, Iraq, Malaysia, Australia and Libya) as well as to ramp up production of its domestic oil blocks by using more advanced technology and by acquiring new or existing blocks. In 2009, Pertamina purchased BP's stake in Offshore North West Java (ONWJ) and in 2011 Pertamina was awarded the West Madura offshore block in East Java.
Pertamina's Operational Highlights:
Source: Pertamina, Annual Report 2016
Corporate Earnings Report Pertamina:
in billion US dollar
¹ in US dollar
Source: Pertamina, Annual Report 2017
Pertamina's Global Bonds:
|Tenor||10 years||10 years||10 years||30 years|
|Maturity||23 May 2021||3 May 2022||20 May 2023||27 May 2041|
|Size||USD $1.00 bln||USD $1.25 bln||USD $1.63 bln||USD $0.50 bln|
¹ at issuance
Pertamina's Global Bonds (continued):
|Tenor||30 years||30 years||30 years|
|Maturity||3 May 2042||20 May 2043||30 May 2044|
|Size||USD $1.25 bln||USD $1.63 bln||USD $1.50 bln|
¹ at issuance
Source: Pertamina, Annual Report 2015
Jalan Medan Merdeka Timur, No. 1A
Central Jakarta, 10110
Phone: +62 21 3815 111