PT. PERTAMINA

Pradito Adi Wicaksono

170610090031

PT. PERTAMINA

I. Company's History

1. Prologue of 1871 - 1885 Period

(Preliminary Period of Oil exploration in Indonesia)

Indonesian oil industry and gas was started at the beginning of 19th century:

a. 12 years after initial drilling in Titusville, Pennsylvania,US1859.

b. Reering 1871 - Zilker 1885 the oil searching and finding (initial drilling in 1883 in Telaga Tiga)

2. Prologue of 1885 - 1945 Period

(Masa Eksploitasi Minyak oleh Penjajah)

a. 1887 - Oil exploration in East Java (Surabaya).

b. 1888 - Concession of Sultan Kutai with JH Meeten in Sanga-Sanga.

c. 1890 - Establishment of refinery in Wonokromo & Cepu.

d. 1892 - Establishment of refinery in Pangkalan Berandan.

e. 1894 - Establishment of refinery in Balikpapan by Shell Transporting and Trading.

f. 1899 - Mining Law of Government of Netherlands (Indische Mijnwet) governing petroleum

searching activity in Indonesia.

US and Netherland

a. US tried to come into Indonesia but the government of Netherlands prevented it. However,

because of US pressure to Den Haag, finally US and Netherlands established joint ventures,

namely SHELL and NIAM (Jambi, Bunyu and North Sumatera).

b. Standard Oil joined and was divided into Standard Oil of New Jersey (established American

Petroleum Subsidiary Company) and Nederlandsche Koloniale Petroleum Maatschappij

(NKPM).

c. NKPM discovered field of Talang Akar (Sumsel), the biggest field in the East Indies.

d. Established Sungai Gerong Refinery located across Kilang Plaju Refinery owned by Shell.

e. 1933 Standard Oil of New Jersey that acquired concession of Java and Madura merged its

entire business into Standard Vacuum Petroleum Maatschappij (SVPM) in the form of joint

venture. There was marketing division of Standard Oil of New York presently bearing the

name of Mobil Oil. This merger status was changed into PT Standard Vacuum Petroleum

(Stanvac) in 1947.

f. 1922 Standard Oil of California entered Kalimantan and Irian Jaya.

g. 1928 Gulf Oil (AS) entered North Sumatera.

h. 1929 Standard Oil of California entered North Sumatera. 1933 Standard Oil of New Jersey

that acquired concession of Jawa and Madura merged its entire business into Standard

Vacuum Petroleum Maatschappij (SVPM) in the form of joint venture. There was marketing

division of Standard Oil of New York presently bearing the name of Mobil Oil.

i. The SPVM merger status was changed into PT Standard Vacuum Petroleum (Stanvac) in

1947.

3. Prologue of 1945-1957 Period

(Pre-Pertamina Oil Struggle Period)

a. During independence war, the oil searching activity wasstopped.

b. Pangkalan Brandan struggle, North Sumatera, and West Aceh.

c. Arisen "Laskar Minyak" supplying airplane and other vehiclenecessities.

d. The establishement of indigenous oil company:

1. 1945 PTMSU was established.

2. 1945 PTMN Cepu was established in ex SHELL location (Field of Nglobo,

Semanggi Ledok and Wonokromo).

3. 1950 PTMN Cepu was changed into PTMNRI Cepu.

4. 1950 PTMN North Sumatera was changed into PTMRI North Sumatera.

5. 1954 PTMNRI North Sumatera was changed into TMSU.

6. July 22, 1957 TMSU was converted into PT ETMSU (exploitation).

e. August 1951 Mohammad Hasan Appeal.

1. Governor of Sumatera, Mr. Teuku H. Moh. Hasan, proposed an appeal struggling

for oil mining and was completely supported by cabinet on August 2nd 1951 and

then a committee was established.

2. Struggles in parliament, one of which was by preparing the Mining Law in lieu of

the Indische Mijnwet.

f. October 24, 1956 Government Regulation No. 24/1956.

1. It was decided that the oil mining of North Sumatera was not returned to SHELL.

4. 1957

a. July 1957 Gen. AH. Nasution was assigned to rehabilitate the mining oil of North Sumatera

and export outcome for purpose of development.

b. 1957 the Government of the Republic of Indonesia expropriated the entire business of

Netherlands in Indonesia. (Except SHELL because of its international-wide ownership).

c. The Change of regionalism nuance into nationalism (AH Nasution, 1957).

d. December 10, 1957 PT Permina was established as the first national oil company.

5. Post 1957

a. 1959 the establishement of NV NIAM (NV Nederlands Indische Aardolie Maatschappij).

1. Joint venture of US and Netherlands.

2. December 31, 1959, 50% of the shares were expropriated by the government of

the Republic of Indonesia and NV NIAM was changed into PT Permindo.

b. 1961 PT Permindo was confirmed to PN Permigan.

c. 1961: PT. PERMINA was changed into PN. PERMINA and then into PN. PERMIGAN.

d. January 4, 1966 Permigan was liquidated because of G30S/PKI (Perbum) Affair.

1. Assets of Permigan was handed over to PN Pertamin and PN Permina

e. 1968 PN Pertamin and PN Permina merged into PN Pertamina.

f. 1971 Law No. 8 of 1971 confirming PN Pertamina to Pertamina was enacted.

g. 2001 Petroleum and Natural Gas Law No 22 of 2001 was enacted. This introduced Pertamina

to become PT Pertamina (Company).

h. 2003 Status of Pertamina was changed into PT Pertamina (Persero).

1. Fundamental change took place in regulator role which became player.

2. Due to the change on its legal status, Pertamina has been treated equacey as

other players in oil & gas industries in Indonesia.

6. Company Period

a. Pertamina, a State-Owned Enterprise (BUMN), was changed into Company operating in field

of energy, petrochemical and other business supporting the business of Pertamina, either

domestically or internationally, which is market-mechanism oriented.

b. Paid-in-Capital of PT. Pertamina (Persero) :

1. PT. Pertamina (Persero) is a State-Owned Enterprise (BUMN) whose 100% of its

share are owned by the State.

2. Paid Capital (State Investment /PMN) of PT. Pertamina (Company) on

establishment was Rp. 100 trillion.

3. The said Rp. 100 trillion was secured from:

"All of State Assets invested to this present in Pertamina, covering Pertamina's

Assets along with all of its Subsidiary Companies, including Fixed Assets that

have been revaluated by Independent Assessor Company, reduced with all

obligations (Debt) of Pertamina"

II. Company Profile

PERTAMINA is a State Owned oil & gas company (National Oil Company), established on December

10, 1957 under the name PT PERMINA. In 1961 the company changed its name to PN PERMINA and

after the merger with PN PERTAMIN in 1968 it became PN PERTAMINA. With the enactment of Law

8 of 1971 the company became PERTAMINA. This name persisted until after PERTAMINA changed its

legal status to PT PERTAMINA (PERSERO) on October 9, 2003.

PERTAMINA’s scope of business incorporates the upstream and downstream sectors. The upstream

sector covers oil, gas and geothermal energy exploration and production both domestically and

overseas. The foregoing is pursued through own operations and through partnerships in the form of

joint operations with JOBs (Joint Operating Bodies), TACs (Technical Assistance Contracts) and JOCs

(Joint Operating Contracts), whereas the downstream sector includes processing, marketing, trading

and shipping. Commodities produced range from Fuel (BBM) and Non Fuel (Non BBM), LPG, LNG,

petrochemicals to Lube Base oil.

With the enactment of the Law of the Republic of Indonesia No. 22 of 2001 on November 23, 2001

relating to Oil and Gas, Law No. 8 of 1971 relating to the State Oil and Gas Mining Company was

declared void. In accordance with the provisions of Law No. 22 of 2001, PERTAMINA was

transformed into a Public Liability Company (Persero) designated PT. PERTAMINA (PERSERO) under

Government Regulation No. 31 of 2003. All existing PERTAMINA provisions including its structural

organization, employment guidelines and procedures as well as other matters associated with its

duties and responsibilities, unless such matters are in contravention of the said Government

Regulation, are declared to continue in force until the Company provides otherwise.

PT PERTAMINA (PERSERO) was established under Notarial Deed of Lanny Janis Ishak, SH No. 20 of

September 17, 2003, and ratified by the Minister for Law & Human Rights under Decision No. C-

24026 HT.01.01 on October 9, 2003. The above proceeded in accordance with the provisions set

forth in Law No. 1 of 1995 relating to Limited Liability Companies, Government Regulation No. 12 of

1998 relating to Public Companies (Persero), and Government Regulation No. 45 of 2001 relating to

Amendment to Government Regulation No. 12 of 1998.

Consistent with its deed of establishment, the objective of the PERSERO is to engage in oil and gas

exploitation, domestically and overseas, as well as in other exploitation associated with or

supporting oil and gas operations.

The objective of the Public Company is to:

1. Exploit profits based on the principle of effective and efficient PERSERO management.

2. Contribute toward improvement of economic conditions for the welfare and prosperity of

the people.

In order to achieve the above aims and purposes, the Public Company engages in the following:

a. Oil and gas exploitation and the processed products and derivatives thereof.

b. Geothermal energy exploitation existing at the time the PERSERO was established, including

Geothermal Power Plants (PLTP) in the final stages of negotiations and which the Perseroan

has managed to gain possession of.

c. Liquified Natural Gas (LNG) exploitation and and other products generated by LNG

refineries.

d. Other exploitation associated with or in support of the undertakings referred to in points

above.

Corporate Values:

1. Clean

Professionally managed, avoid conflict of interest, never tolerate bribery, respect trust and integrity

based on Good Corporate Governance principles

2. Competitive

Able to Compete both regionally and internationally, support growth through investment, build cost

effective and performance oriented culture.

3. Confident

Involve in national economic development as a pioneer in State owned Enterprises' reformation, and

build national pride.

4. Customer Focused

Focus on customers and commit to give the best service to customers

5. Commercial

Create added values based on commercial oriented and make decisions based on fair business

principles.

6. Capable

Managed by professional, skilled, and high quality leaders and workers, committed to build research

and development capability.

III. Vision and Mission

Vision

To be a world class national oil company

Mission

To carry out integrated core business in oil, gas, and biofuel based on sound commercial principle

IV. Structure

V. Human Resources

The development of human resources focuses on the creation of a proficient, professional,

committed, dedicated, and business-oriented employees.

To achieve this, Company has determined the following corporate strategies for the development of

its human resources: * Implement an organized and consistent development of employees such that

employees have the competency, skills, dedication, high performance and productivity. * Appreciate

in the form of welfare and competitive remuneration and also giving protection to employees

according to the standard of oil and gas companies in Indonesia as well as the existing regulation. *

Establish and develop a broad and a secure industrial relationship in order to create a harmonious

and comfortable atmosphere to support high productivity.

This corporate strategy will be the basis for the implementation of human resources development

program. The Company convince that human resource development is a long-term investment and

therefore is committed to a continuous and systematic development program in anticipation of

changing business needs.

The Company has implemented transparent selection and recruitment process in recruiting experts

and fresh graduates for regeneration. The preliminary selection and recruitment processes are

conducted through independent third parties such as University of Indonesia, University of Gadjah

Mada, and University of Padjadjaran.

Continuing 2001 policy, Company has developed a career management program and system that is

based on ability and performance (merit system). The program and system are expected to improve

effectiveness and transparency in developing the career of Pertamina?s employees in the future.

To create a corporate culture that supports the Company?s transformation process, Company has

established and undertaken a socialization program on the new leading values known as the FIVE-M

(Focus, Integrity, Visionary, Excellence and Mutual Respect). For performance measurements, the

Company uses Key Performance Indicators (KPI or UKT) and Productivity Index. These measurements

enhance continuous improvement, which accelerates the Company to an international status.

VI. Health, Safety and Environment (HSE)

Objective

Zero Incident

Aim

We, PT Pertamina (Persero) and its subsidiaries/affiliates, have a commitment to the protection of

anyone, the Company's assets, environment, and neighboring communities against the potential

dangers involved in PT Pertamina (Persero)'s operations.

Commitment

Both the Line Management and workers will, with earnest intent:

1. Give top priority to the aspects of Health, Safety and Environment (HSE)

2. Identify the potential dangers and minimize the risks for prevention of incidents

3. Use the best technology in order to reduce the impacts of such operations on human beings,

assets, and the environment

4. Make the performance of Health, Safety and Environment (HSE) a component in the

evaluation and appreciation of all workers

5. To improve awareness and competency level of workers, in order to make their jobs done in

a proper and safe conduct

6. Establish and maintain harmonious relations with the stakeholders relative to operations for

mutually profitable partnership

President Director of PT Pertamina (Persero) assumes responsibility to guarantee that the Policy on

Health, Safety and Environment (HSE) will be implemented and that its effectiveness be reviewed

periodically.

The line management, workers, and working partners of each area under the control of PT

Pertamina (Persero) are held responsible to carry out and comply with the Policy on Health, Safety

and Environment (HSE).

VII. Product

Provide Information of PERTAMINA’s downstream products; consist of Fuel (BBM), non-fuel,

Gas, Petrochemical, and Lubricant.

Fuel (BBM)

Fuel Products:

Motor Gasoline

Kerosene

HSD (High Speed Diesel)

MDF (Marine Diesel Fuel)

MFO (Marine Fuel Oil)

Special Fuel 

Special Fuel products :

Aviation Gasoline

Aviation Turbine Fuel

Bio Solar

Pertamax

Pertamax Plus

Pertamina Dex

Bio Pertamax

Non-Fuel (Non-BBM)

Non Fuel Products :

Asphalt

Lube Base Oil

Solvent

Gas

Gas Products consists of LPG (Liquid Petroleum Gas), Gas Fuel (BBG), Musicool (Substitute

refrigerant for CFC, with low pollution and environmentally friendly)

Lube Base Oil

Provides information of PERTAMINA’s Lube Base Oil Products based on their function:

Automotive Gear Oil

Circulating Oils

Heavy Duty Diesel Engine Oils

Industrial and Marine Engine Oils

Industrial and Hydraulic Oils

Passenger Car Oils

Powershift Transmissions and Heavy Equipment Hydraulic Oils

Refrigerating Oils

Two Stroke Gasoline Engine Oils

VIII. Business

Upstream Activities

Upstream activities cover exploration and production of oil, gas, and geothermal. The aim of

exploration activities is to discover new oil and gas reserves as a replacement of hydrocarbon that

has been produced. This effort is intended to maintain the production continuity. The exploration

and production activities are performed through its own operation and joint operation

arrangements.

The business partnership forms are JOB-EOR (Joint Operating Body for Enhance Oil Recovery), JOB-

PSC (Joint Operating Body for Production Sharing Contract), TAC (Technical Assistance Contract),

Consortium Cooperation System, IP (Indonesian Participation), PPI (Pertamina Participating Interest)

and project loan. While for the geothermal sector, the business partnership is JOC (Joint Operating

Contract) arrangement.

The company has concession block operated as own operation arrangement covering 7 (seven) oil

and gas Operation Area , i.e. Nangroe Aceh Darussalam (NAD) Northern Sumatra Operation Area

with the main office in Rantau, Central Sumatra Operating Area with the main office in Jambi,

Southern Sumatra Operation Area with main office in Prabumulih, Western Java Operation Area

with main office in Cirebon, Eastern Java Operation Area with main office in Cepu, Kalimantan

Operation Area with main office in Balikpapan, and Papua Operation Area with main office in

Sorong. There are 3 geothermal producing areas with the 162 MW installed capacity owned by

Pertamina. Those areas are : Sibayak (2 MW) located in North Sumatra, Kamojang (140 MW) located

in West Java and Lahendong ( 20 MW) located in North Sulawesi.

Pertamina markets its fuel products for fulfilling the demand from industry, bunker, land

transportation and domestic consumption. Pertamina lubricant has Lube Oil Blending plant (LOBP)

in Jakarta, Surabaya and Cilacap with total capacity of around 573,000 kilo liter per year (2

shift/day). Pertamina lubricant is consumed by industrial engine, automotive engine, marine engine

etc. Pertamina has come to be the market leader of Indonesian lubricant. Pertamina Upstream has

64 oil and gas contracts of joint operation arrangements. They consist of 6 partnership under JOB-

EOR contract systems, 12 partnership under JOB-TAC contract systems, 34 partnership under TAC

contract systems, 1 partnership under Consortium Cooperation System, 3 project loans, and 8

partnership under IP/PPI contract systems. Meanwhile there are 8 Joint Operating Contracts for

geothermal exertion.

Among 64 of oil and gas contracts within the joint operation arrangement, 30 contracts are in the

commercial-producing stage and the other areas are still in the exploration stage.

To develop its exploration and production business, Pertamina Upstream has made a step forward

through strategic alliances with domestic and foreign partners. Pertamina Upstream has prospective

business in oil and gas drilling services called Pertamina Drilling Service (PDS), which owns 28

drilling-rig units.

In the gas transmission business, Pertamina Upstream has 3800 km total length of gas pipeline and

64 compressor stations.

Downstream Activities

Directorate engages in the activities of oil and gas refining, and managing the distribution and

marketing of the refined products. The main objective of its activities is to meet the domestic

market fuel demand, also non-fuel and petrochemical demand in the domestic and international

markets.

Processing, Pertamina operates 7 fuel refineries, 2 LPG plants, and 2 LNG & LPG plants. Some fuel

refineries also process non-fuel and petrochemical products.

Shipping, Pertamina has sea transportation fleet to carry oil and gas, and to distribute fuel, non-fuel,

and petrochemical products for domestic and export market. It is conducted using owned and

chartered tankers. The other activities are brokerage, ship agency, crewing, etc. In 2002, the

activities are conducted by 130 units of tankers which consist of 32 units owned by Pertamina, 96

units of chartered tankers, and 2 units of floating storage. The tanker fleet is capable to offer

transportation with 48.9 million Long Ton capacity.

Marketing and Trading, Main Marketing activities cover business activities in marketing fuel, lube oil,

LPG, LNG, aviation, petrochemical, and other non-fuel products for domestic market. Export and

import is conducted by Trading.

Fuel Business, Pertamina market fuel products for the needs of industry, land transportation,

household (retail), and bunker.

Lube Oil Business, Pertamina has Lube Oil Blending Plant (LOBP) in Jakarta, Surabaya, and Cilacap

with 573,000 kilo liter annual total capacity (2 shifts/day). The product is used for industrial

machinery, automotive machine, marine engine, etc. Pertamina is currently the market leader in

Indonesia lube oil business.

LPG Business, LPG business has good prospect in the future because the market growth and demand

are relatively high. It has not given profit contribution because the market price has not reach the

economical level.

LNG Business, Pertamina has long experience in LNG business and has an excellent reputation in

international market. Aviation Business, The rapid development of air transportation will stimulate

the aviation business growth. Pertamina has the resources and infrastructure for aviation business

in all airports in Indonesia. The products has meet the international standard requirements.

Petrochemical and Non-Fuels Business, Pertamina has refineries which produce various non-fuels

and petrochemical products for domestic and international markets. This is a profitable business for

Pertamina.

Distribution and Marketing Network, In distributing fuel, non-fuel, gas, and petrochemical products

for domestic market, Pertamina operates 8 Marketing Units located throughout Indonesia.

Pertamina storage facilities comprise of 24 units of in-land depo, 97 units of sea-fed depo, 53 units

of aviation depo with 1,308 units of tanks and 1,051 kilometers pipeline. Maximum storage capacity

reaches 13.6 million kiloliters.

The distribution channels include over-land, by sea and by air. To expand its distribution network for

its products, Pertamina and partners have developed a range of supporting facilities for its

distribution activities.

Downstream Business Products

In general, the Downstream products consist of fuel, special fuel, non-fuel and petrochemical, gas,

and other products. Fuel products, comprise of Premium, Kerosene, Autogas, Automotive Diesel Oil

(ADO), and Industrial Fuel Oil (IFO).

Special Fuel products, comprise of Aviation Gasoline (Avigas), Aviation Turbin Fuel (Avtur), Super TT,

Premix 94, Pertamax, and Pertamax Plus.

Non-Fuel and Petrochemical products, comprise of Green Cokes, SBP/LAWS/SGO, Polytam, Pure

Terephithalic Acid (PTA), Asphalt, Paraxylene, Benzene, Minarex, Lube Base Oil, Lube Oil, Minasol,

Waxes, Pertasol, Propylene, Paraffinic 60 & 95, Raffinate, Toluena, and Heavy Aromat. Some well-

known lube oil brands are Mesran, Mesrania, Meditran, Rored, Translik HD, Prima XP, Martron,

Medripal, Salyx, Turalik, Grease Pertamina, etc.

Gas products, comprise of Liquid Petroleum Gas (LPG) and Liquid Natural Gas (LNG).

Other products, comprise of Low Oil Mogas Component (LOMC), Naphta, Residue, LSWR, HVGO,

Decant Oil, Sulfur, and Lean Gas.

Other Businesses

Pertamina has 13 Subsidiaries and 16 Joint Ventures operating in various industries such as hotel,

Upstream & Downstream business support service, shipping, airlines, dockyard, marketing service,

hospital, oil drilling service, management service, contractor, supplier, insurance, manufacturing,

and others.

Subsidiaries and Joint Ventures as Portfolio Investment are expected to increase company's value

such in the form of either dividend or through their support to Pertamina activities.

Review

Mengapa PT. Pertamina

Saya memilih PT. Pertamina sebagai objek penelitian karena pertamina sebuah perusahaan

berskala nasional yang mempunyai berbagai bisnis tetapi masih dalam satu ruang lingkup.

Pertamina juga mempunyai potensi untuk menjadi sebuah perusahaan multinasional yang

sukses di bidangnya.

Manajemen

Dalam menghadapi ketidakpastian lingkungan yang tinggi, PT. Pertamina sebagai perusahaan yang

berskala nasional harus menerapkan manajemen desentralisasi. Manager tingkat bawah atau tengah

harus berkompeten untuk membuat sebuah keputusan. Sebuah perusahaan yang besar tidak

dimungkinkan untuk menggunakan sentralisasi, jika keputusan terpusat kepada manager top maka

akan mengganggu/memperhambat jalanya sebuah suatu perusahaan. Manajemen desentralisasi

dimungkinkan juga karena adanya budaya perusahaan yang selalu terbuka.

SDM

Sebagai perusahaan yang berskala besar dan sudah siap untuk membuka pasar internasional, PT.

Pertamina dituntut mempunyai SDM sebagai investasi jangka panjang yang berkompeten. Dalam hal

ini perekrutan diambil dari UI, UGM, UNPAD.

Untuk mengembangkan SDM, PT. Pertamina mengembangkan program manajemen karir

berdasarkan kemampuan dan kinerja.

Produk

Sebagai perusahaan terbesar Indonesia yang bergerak di bidang minyak bumi dan gas alam,

PT. Pertamina memonopoli bisnis penjualan bahan bakar di Indonesia, saat ini hanya shell,

total dan petronas yang menjadi pesaing pertamina, itu pun hanya di kota – kota besar.

Guna mengembangkan bisnisnya pertmina juga menjual berbagai hasil alam yang sudah

diolah dari LPG, pelumas kendaraan sampai bahan bakar untuk kapal terbang

Daftar Pustaka

http://pertamina.com