Jakarta. Pertamina is preparing a major restructuring by merging three of its downstream subsidiaries — Kilang Pertamina Internasional (KPI), Pertamina Patra Niaga, and Pertamina Internasional Shipping (PIS) — in a move aimed at streamlining operations across refining, fuel distribution, and logistics.

The plan was conveyed by Pertamina President Director Simon Aloysius Mantiri during a meeting with Finance Minister Purbaya Yudhi Sadewa at the Finance Ministry’s Djuanda I building in Central Jakarta on Friday. Simon was accompanied by Vice President Director Oki Muraza and Finance Director Emma Sri Martini.

“There are several points we needed to report to the finance minister, including our downstream business integration plan,” Simon told reporters after the meeting.

The three subsidiaries play central roles in Indonesia’s energy supply chain. KPI operates Pertamina’s refining business and processed more than 300 million barrels of crude oil between January and November 2025. Pertamina Patra Niaga manages domestic fuel distribution and retail operations, including subsidized fuels. For 2025, the government set the subsidized diesel quota at 18.8 million kiloliters and the subsidized gasoline Pertalite quota at 31.2 million kiloliters. By the end of 2025, diesel distribution had reached 98.7 percent of the national quota, while Pertalite realization stood at 90.1 percent.

PIS, meanwhile, serves as Pertamina’s shipping and logistics arm, operating a fleet of more than 250 vessels. The company has rapidly expanded its international routes from 11 in 2021 to 65 in 2024. The expansion translated into stronger financial performance, with PIS booking revenue of $3.48 billion in 2024, up 4.48 percent from $3.33 billion a year earlier. Net profit surged 69.31 percent to $558.6 million from $329.9 million in 2023.

In addition to the restructuring plan, Simon said Pertamina also discussed the possibility of tax incentives related to the corporate action.

“Tax incentives are also part of the discussion,” he said, without elaborating.

The proposal comes as the government maintains a cautious stance on fiscal incentives for state-owned enterprise restructuring. Finance Minister Purbaya has previously said the government is not inclined to grant tax breaks for corporate actions by SOEs, including those proposed by Danantara, the sovereign wealth fund tasked with supporting consolidation.

Purbaya has stressed that the government must protect the health of the state budget and ensure tax policies remain fair and sustainable, meaning any fiscal incentives would be subject to strict scrutiny.