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House member questions number of subholdings, Pertamina: 'To ensure transparency'

Tempo - June 13, 2024

Bagus Pribadi, Jakarta – Member of Commission VI of the House of Representatives or DPR Khilmi criticized Pertamina regarding the number of its subholdings. He asked for a study of each Pertamina subholding.

"Don't let this large number of subholdings cause Pertamina's costs to become high and in turn let the fuel prices skyrocket compared to other countries," he said on Wednesday, June 12, 2024.

Khilmi highlighted this issue since there is a significant possibility that some subholdings would be at a disadvantage while others are profitable. "This must be calculated," he said.

Responding to this, Pertamina Finance Director Emma Sri Martini explained that without subholdings, Pertamina's finances were mixed up and lacked transparency from the constructors. Thus, the subholdings are intended to create cost transparency, she said.

She also said Pertamina had ensured (transfer pricing) as it is audited annually. "It has to be arm slang, nobody is harmed and the benchmark pressing must be comparable to the market. As seen at our deposits to the state, everything is improving and nobody is at a loss," she said.

Based on the recorded net profit, Pertamina noted an increase from US$3.81 billion in 2022 to US$4.44 billion, equal to Rp62 trillion, with a total profit of Rp72 trillion. "The comprehensive formation of holding and subholding at Pertamina has produced efficient results," said Emma.

Pertamina's oil and gas production throughout 2023 reached 1.044 million barrels of oil equivalent per day (boepd), an 8 percent increase compared to 2022 with 967,000 boepd. Additionally, refinery intake also increased 2 percent to 341 million boepd, and sales volume increased 2 percent to 100 million kiloliters.

Source: https://en.tempo.co/read/1879314/house-member-questions-number-of-subholdings-pertamina-to-ensure-transparenc