Jakarta. State-owned energy giant Pertamina plans to finalize the merger of three of its main subsidiaries by Jan. 1, 2026, President Director Simon Aloysius Mantiri said on Monday.

The plan involves combining fuel trading unit Pertamina Patra Niaga, refinery arm Kilang Pertamina Internasional (KPI), and Pertamina International Shipping (PIS), which handles logistics and maritime transport.

“We hope the merger can be effective by Jan. 1, 2026,” Simon told reporters after attending the inauguration of new members of the downstream oil and gas regulatory committee BPH Migas at the Energy and Mineral Resources Ministry in Jakarta.

Simon said the merger process has reached the final stage and will soon be submitted to the sovereign wealth fund manager Danantara for approval.

He had already outlined the plan during a hearing with Commission VI of the House of Representatives in September, stating that the consolidation is aimed at reinforcing operational effectiveness and cost efficiency amid persistent global energy market pressures.

“The integration is a top priority for Pertamina and aligns with Danantara’s direction,” he said.

Pertamina is Indonesia’s largest integrated energy company, operating across upstream exploration, refining, trading, shipping, and national fuel distribution. Beyond these three units, the group controls a wide portfolio including Pertamina Hulu Energi (PHE) for oil and gas upstream, Pertamina Geothermal Energy (PGE) for geothermal assets, PGN for gas pipeline networks, Pertamina Lubricants for petrochemicals, and Pertamina New & Renewable Energy for solar, hydrogen pilots, and future clean energy development.

Within this structure, Patra Niaga, KPI, and PIS form the backbone of the downstream supply chain: trading fuels, refining crude, and transporting cargoes. Pertamina expects that integrating the three units will streamline decision-making, eliminate overlapping functions, centralize cost control, and improve competitiveness as margins tighten globally. The consolidation is also designed to create a single unified downstream commercial and logistics platform.

Simon said the merger is in the finalization stage and will soon be submitted to Indonesia’s sovereign wealth fund manager, Danantara, for approval. The plan was previously explained to lawmakers during a hearing with Commission VI of the House of Representatives in September.

He added that global market volatility, such as lower oil demand, rising supply from new refineries, and shrinking spreads, is driving the company to accelerate restructuring. Pertamina is also optimizing business processes across all units to lift efficiency.

Simon said Pertamina will maintain its core focus on oil and gas while accelerating investment in new and renewable energy as part of its long-term transition toward becoming a global-class energy company.

“And just as important, these efforts are also about protecting and strengthening the company’s reputation,” he added.