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Energy

After Scandal, Pertamina Strengthens Oil Governance to Cut Imports

04 Mar, 2025
After Scandal, Pertamina Strengthens Oil Governance to Cut Imports

Pertamina's oil refineries, managed by PT Kilang Pertamina Internasional (KPI), continue to rely on crude oil imports to meet domestic fuel demand. According to Simon Aloysius Mantiri, President Director of PT Pertamina (Persero), Indonesia's internal crude oil production remains insufficient to fulfill the country's energy needs (3/3/2025).

Simon revealed that about 40% of crude oil requirements and approximately 42% of refined products must be sourced from abroad. This dependence underscores the ongoing challenge of achieving energy self-sufficiency.

Despite the import reliance, Pertamina has committed to keeping its refineries operational to secure national energy availability. The company is also working to improve its refinery management following recent findings by the Attorney General's Office regarding alleged corruption in crude oil governance from 2018 to 2023.

Simon emphasized that Pertamina will strengthen transparency and governance by coordinating with the Ministry of Energy and Mineral Resources (ESDM). This includes reassessing and enhancing processes to prevent further mismanagement.

Echoing Simon’s statement, Pertamina's Vice President Director, Wiko Migantoro, stressed the company’s efforts to bolster national energy capacity under the new government. He highlighted Pertamina's work in the upstream sector to boost domestic oil and gas production and reduce dependency on imported crude.

The government also supports these efforts by mandating that state-owned crude oil be processed at Pertamina's refineries. To enhance refinery performance, Pertamina plans to increase the yield of valuable products from 75% to 82%, allowing refineries to produce more high-value fuels.

In line with the transition to renewable energy, Pertamina has started adopting new energy sources. Since January 1, 2025, the company has implemented a 40% biodiesel (B40) blend, as mandated by the government. This shift aims to cut crude oil imports, although rising industrial and public energy demands mean imports may still be necessary.

To address this, Wiko affirmed that Pertamina will refine its import management processes while ensuring close collaboration with the government.



PHOTO: THE JAKARTA POST

This article was created with AI assistance.

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