State-controlled Pertamina formalizes its strategy on diversifying its energy business, focusing on becoming less dependent on its oil and gas business.
With a decrease in crude oil production in Indonesia, state-controlled oil company Pertamina is now focusing on diversifying its energy business and help the country to boost its electricity generation capacity.
The company has set a strategic direction to become a “world-class energy company by 2023.” The change in strategy sets a legal foundation allowing the company to diversify its energy business.
With Indonesia’s plentiful geothermal resources, geothermal is a natural option for Pertamina. The planned increase in diversification is not a huge step as the company already works with different energy technologies, e.g. through its geothermal subsidiary Pertamina Geothermal.
There is an increase in competition from other energy players in the region and feels a threat should it continue to rely mostly on its oil and gas business.
Analysts see the recent announcement though more as a formality, as the company already is working heavily in other segments.
Source: The Jakarta Globe