Jakarta, Indonesia Sentinel — Indonesian President Joko Widodo (Jokowi) has approved a state capital injection (PMN) for PT Pertamina (Persero) amounting to Rp 49.9 billion (approximately $3.2 million USD).
This decision is outlined in Government Regulation No. 40 of 2024 regarding the increase of Indonesia’s state capital in the national oil and gas company. The regulation was officially enacted on October 10, 2024.
According to the regulation, the state capital injection is intended to strengthen Pertamina’s financial structure and boost its business capacity.
The funds come from the transfer of state-owned assets previously managed by the Ministry of Energy and Mineral Resources, initially financed through the 2016 national budget.
“The additional state capital injection is valued at Rp 49.945.989.999,” the regulation states.
This financial support will be allocated toward expanding and upgrading fuel tanks and infrastructure related to biofuel production and storage.
Specifically, it will be used for the construction and improvement of fuel terminals and facilities in various regions across Indonesia, including Aceh, South Sumatra, East Java, Central Java, Central Kalimantan, Bali, and West Java.
By improving its infrastructure, Pertamina aims to meet growing energy demands and further support Indonesia’s renewable energy initiatives, particularly in biofuels.
The state-owned enterprise plays a critical role in ensuring energy security in Indonesia, and the injection is expected to enhance the company’s operational capacity, allowing it to handle larger volumes of fuel and biofuels.
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This move aligns with the Indonesian government’s broader efforts to bolster state-owned enterprises and secure long-term energy stability. It also highlights the country’s commitment to investing in renewable energy sources to reduce its reliance on fossil fuels.
(Becky)
