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45-400: In 1970, The Republic of Indonesia bought this refinery from PT Stanvac Indonesia to become part of its Government Oil Company, PERTAMINA . 2°57′04″S 104°52′08″E  /  2.9510°S 104.8690°E  / -2.9510; 104.8690 This South Sumatra location article is a stub . You can help Misplaced Pages by expanding it . Pertamina PT Pertamina (Persero)

90-472: A Daily Rate and Integrated Drilling Management (MPT) system for oil, gas, and geothermal wells. Presently, PT PDSI owns 34 drilling rigs (28 owned by PT PDSI and 6 transferred from PT Usayana) PHE is one of the Upstream Directorate subsidiaries working in the oil and gas upstream business and is also an upstream business vehicle for managing the domestic and overseas co-operation portfolio in

135-530: A coup by virtue of Supersemar . Although he would not formally become president for another two years, Suharto began laying down the foundations for what would become the New Order regime. In late August 1966, Suharto held a seminar at SESKOAD to discuss political and economic matters and the way in which the New Order would approach those problems. The FEUI economists, headed by Widjojo Nitisastro , attended

180-604: A number of president directors. Recent president directors have included the following: Pertamina has not built any new refineries since the Balongan refinery was opened in West Java in the mid-1990s. PTT Public Company Limited and Pertamina signed into partnership to build a new petrochemical complex in Indonesia for an estimated cost of US $ 4 to 5 billion. As of 2013, Pertamina operates six oil refineries which have

225-540: A rule of thumb, refineries need to produce at least 200,000 bbl (32,000 m ) per day to reach reasonable international standards of efficiency.) There are several other refineries in Indonesia which Pertamina has responsibilities for: Source: Indonesian Ministry of Energy and Resources, 2012 Handbook of Energy and Economic Statistics of Indonesia . In addition to the refineries which Pertamina owns, Pertamina has invested in two operating companies that manage output from LNG plants. Pertamina also invested in

270-500: A total combined capacity of around 1 million barrels (160 thousand cubic metres ) of oil per day: Source: Indonesian Ministry of Energy and Resources, 2012 Handbook of Energy and Economic Statistics of Indonesia . ( Note: By world standards, none of Indonesia's refineries are large. The world's largest refinery, at Jamnagar in India, has a production capacity of over 1,200,000 barrels (190,000 cubic metres) per day. As

315-433: Is the largest company in Indonesia . In 1957, Royal Dutch/Shell 's assets in Indonesia (trading as Bataafse Petroleum Maatschappij ) were nationalised, from which Permina was founded as a state-owned oil monopoly, headed by Lieutenant-General Ibnu Sutowo . Sutowo's position as the second deputy of Abdul Haris Nasution was the beginning of the armed forces' involvement in the oil industry. Permina distributed oil for

360-708: Is also sometimes included as a member of this group. In the mid-1950s, the economists who would become the Berkeley Mafia were students at the Faculty of Economics at the University of Indonesia (FEUI). The faculty was headed by Sumitro Djojohadikusumo , an economist who had served as Minister of Trade and Industry and Minister of Finance for the Government. Sumitro was the only teacher with an economics doctorate and so had to turn to foreign lecturers from

405-540: Is an Indonesian state-owned oil and natural gas corporation, headquartered in Jakarta . It was created in August 1968 by the merger of Pertamin (established 1961) and Permina (established in 1957). In 2020, the firm was the third-largest crude oil producer in Indonesia behind US-based companies ExxonMobil 's Mobil Cepu Ltd and Chevron Pacific Indonesia . According to the 2020 Fortune Global 500 list, Pertamina

450-626: Is based in Algeria. As of 27 November 2013, ConocoPhillips Algeria Ltd. operates as a subsidiary of PT Pertamina (Persero). Holding company for Pertamina's downstream operations. Holding company for state-owned hospitals; Pertamina owns 51%, minority shareholders include the Indonesia Investment Authority and Swire . Owns minority stock in Pertamina subsidiaries to satisfy "two-shareholder minimum" required by

495-459: Is established on 18 November 2013, based on the need for international asset management that is focused on overseas assets of PT Pertamina (Persero). PT Pertamina EP Cepu ADK hereinafter referred to as PEPC ADK was established on 15 August 2013 in order to manage Fields of Alas Dara and Kemuning (ADK). Following the prevailing rules and legislation in the Ministry of Energy and Mineral Resources,

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540-573: Is now under the coordinator of the State Minister of State-owned Enterprises. Like other contractors, Pertamina holds a Cooperation Contract with the Oil and Gas Regulatory Body. With its transformation into a limited company , Pertamina has become a business entity with the main target of making a profit. During the 1970s, until 1976, the president director of Pertamina was Ibnu Sutowo , a well-known figure in Indonesia. Since then, there have been

585-650: The Netherlands and lecturers from other faculties to assist in educating the students at FEUI. As tensions grew between Indonesia and the Dutch government over West Irian (now known as West Papua ), Dutch lecturers began to leave the country. Sumitro turned to the Ford Foundation for assistance. The Ford Foundation then began a process by which students from the FEUI were chosen to undertake overseas studies at

630-620: The Provisional People's Consultative Assembly adopted a policy that oil and gas extraction could only be carried out by the state, through a state-administered company. Pertamin was responsible for the administration, management and controlling of the exploration and production. The policy was short-lived. An agreement between the state and foreign companies was affirmed that gradually, oil refinery manufactures and other assets in marketing and distribution were to be sold to Indonesia within five to fifteen years. In 1968, to consolidate

675-569: The University of California, Berkeley . After the Ford Foundation had conducted some preliminary preparations, the overseas studies program began in 1957. By the early 1960s, all of the students who had been sent abroad had returned from Berkeley and had begun taking up positions as lecturers at the Army Staff and Command College (SESKOAD). In 1966, General Suharto took over executive control in Indonesia from President Sukarno in

720-482: The 21st century. The government took over the operation of the company and sought means by which to repay its debts. Pertamina's debt problems were eventually solved through a large government bail-out, which nearly doubled Indonesia's foreign debt. Human rights observers have long expressed concerns about Indonesia's hostility to labour unions . According to the Multinational Monitor : "In 1985,

765-613: The Indonesian Limited Companies Act. There are various PERTAMINA products consisting of fuel (BBM), non-fuel, gas, petrochemical products, and lubricants. Fuel (BBM) Fuel Products: Berkeley mafia The Berkeley Mafia was the term given to a group of University of California -trained economists in Indonesia who were given technocratic positions under the Suharto dictatorship during

810-562: The Indonesian branch of Hizb ut-Tahrir , considered the Berkeley Mafia to be traitors, a view stemming particularly from its willingness to privatise the nation's industries. With the beginning of the oil boom in the mid-1970s, Suharto favored the economic nationalists and so the Berkeley Mafia's influence was restricted. Suharto would turn to the Berkeley Mafia again in the mid-1980s, when the price of oil began to drop and with it Indonesia's economic growth. The Berkeley Mafia presided over

855-645: The PSC between SKKMigas and PEPC ADK was signed on 26 February 2014. PEPC ADK is the operator of Alas Dara and Kemuning, located in Blora, Central Java, which was previously operated by Mobil Cepu Ltd. (MCL). In line with the commitment to the Government, PEPC ADK shall conduct Well Re-entry, Perform G&G Study, GGR Study, and exploration drilling. Since established, the PEPC ADK has never changed its name. ConocoPhillips Algeria Ltd. owns three onshore oil fields. The company

900-696: The PT Arun 6 LNG trains near Lhokseumawe , Aceh, which had a total capacity of 12.5 million tons per annum. They closed down due to a lack of feed gas in 2014, and now Arun has used an LNG import terminal. During 2012 and early 2013, it was announced several times that there were plans to build two more large fuel refineries, each with a capacity of around 300,000 barrels (48,000 cubic metres) per day, perhaps in Balongan, West Java (or, alternatively, in Bontang, East Kalimantan) and in Tuban, East Java. The first facility

945-806: The Suharto dictatorship itself, aligned with the United States during the Cold War . Sharing significant similarities with the Chicago Boys in Chile (1970s–80s), such as staunch anti-communism , the Berkeley Mafia was not considered to be neoliberal unlike the former. The group included Widjojo Nitisastro , Mohammad Sadli , Emil Salim , J. B. Sumarlin , and Ali Wardhana . Dorodjatun Kuntjoro-Jakti who graduated later from Berkeley

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990-478: The agricultural sector. At the same time, an international program to support economic recovery was established under the auspices of a newly-formed Inter-Governmental Group on Indonesia . The new economic program was successful at stabilizing the economy. Inflation fell from 650% in 1966 to only 13% in 1969. After Suharto became president in 1968, the members of the Berkeley Mafia team were appointed to ministerial and senior advisory posts in Suharto's cabinet. Thus,

1035-797: The business permit that had been issued previously (in September 2008). By obtaining a business license and special rights, PT Pertamina Gas now has a regulatory basis to play the principal role in the gas business in Indonesia. PGE was founded on 12 December 2006. This Pertamina subsidiary carries out geothermal exploration and exploitation in 15 working areas (WKP) in Indonesia, namely: Sibayak-Sinabung, Sibual-buali–Sarulla, Sungai Penuh-Sumurup, Tambang Sawah-Hululais, Lumut Balai, Waypanas-Ulubelu, Cibereum-Parabakti, Pengalengan (Patuha-Wayang Windu), Kamojang-Darajat, Karaha-Telagabodas, Dieng, Iyang-Argopuro, Tabanan-Bali, Lahendong-Tompaso and Kotamobagu. It went public in 2023 ( IDX :  PGEO ). PEP Cepu, which

1080-401: The company. This debt was equivalent to approximately thirty per cent of Indonesia's GNP at the time. Others offer a figure of a $ 15 billion debt. A public investigation damaged the reputation of the national elite both among Indonesians and foreigners. However, charges against Ibnu Sutowo were dismissed and he and his family remained among the richest and most powerful in Indonesia, into

1125-668: The entire archipelago. Permina founded the Apprentice Technical School ( Sekolah Kader Teknik ) in Brandan to train and produce experts in the field. In 1962, the company went on to establish the Oil Academy in Bandung . The academy's curriculum covered the technical aspects of the petroleum industry, and the graduates became the main source of labor for Permina (which was renamed Pertamin in 1961). In 1960,

1170-486: The existing refineries so as to add around 500,000 bbl (79,000 m ) per day to Pertamina's current refining capacity of around 1 million bbl (160 thousand m ) per day. Pertamina also has two gas reserves and a petrochemical company. Pertamina's products include a great variety of fuels, chemicals, additives, and retail products. Pertamina has the largest distribution network for petroleum products ( gas stations , etc.) in Indonesia. Along with

1215-589: The form of Production Sharing Contracts (PSC), Joint Operating Body-Production Sharing Contracts (JOB-PSC), Indonesian Participating / Pertamina Participating Interests (IP/PPI) and Badan Operasi Bersama (BOB). PHE’s overseas working areas covered: Western Desert Block 3, Iraq; Block 10 & 11.1, Offshore South Vietnam; Block SK-305, Offshore Sarawak, Malaysia; Sabratah 17-3 Block, Offshore Libya; Sirte 123-3 Block, Libya; Block 13, Red Sea, Offshore Sudan; Block-3, Offshore Qatar; and Basker Manta Gummy Block, Australia. Pertamina Internasional Eksplorasi dan Produksi (PIEP)

1260-1289: The gas stations, Pertamina also has a convenience store chain, integrated with their gas stations. The development of Bright convenience stores and cafes is self-governed by PT Pertamina Retail. Pertamina has 27 subsidiaries. PT Pertamina EP (PEP) is engaged in exploration. PEP has also been undertaking other supporting businesses, which have been intended to back up the main business directly or indirectly. Presently, Pertamina EP produces around 127.6 million barrels (20.3 million cubic metres ) of oil per day and around 1,054 million cubic feet (29.8 million cubic metres ) per day at standard conditions for gas. Pertamina EP Working Areas of 140.000 km2 were once largely PT Pertamina (Persero)’s Oil and Gas Mining Authority Zone. The working areas are managed through its own operation and partnership co-operation. Pertamina EP Working Areas consist of five assets. The operation of those assets comprise 19 Field Areas, namely Rantau, Pangkalan Susu, Lirik, Jambi and Ramba in Asset 1, Prabumulih, Adera, Limau and Pendopo in Asset 2, Tambun, Subang and Jatibarang in Asset 3, Cepu in Asset 4 as well as Sangatta, Sangasanga, Bunyu, Tarakan, Tanjung and Papua in Asset 5. Besides

1305-586: The gas transmission business, Pertamina owns a gas pipeline network with a total volume of 34,000 km-inches in Northern Sumatra, Central Sumatra, Southern Sumatra , Western Java, Eastern Java , and East Kalimantan In January 2009, PT Pertamina Gas obtained a Transportation Permit and in February 2009, it received an exclusive right from BPH Migas for gas transportation along 43 transmission routes. These permits and exclusive rights complemented

1350-511: The government ordered the firing of over 1,600 workers at Pertamina and foreign oil companies, charging that they had been members of the Indonesian Communist Party , which had been permanently banned 19 years earlier when Suharto took power." To execute a clause in the 2001 Oil and Natural Gas Act, in 2003 Pertamina legally became PT PERTAMINA (Persero), as per the enactment of Government Regulation No.31/2003. Pertamina

1395-419: The government's ability to borrow money from overseas was constrained, and Pertamina was no longer providing revenues to the state. Instead, the massive enterprise turned out not to be making money but accumulating losses. In February 1975, Pertamina could no longer pay its American and Canadian creditors. An investigation followed, which revealed over US$ 10 billion in debts, mismanagement, and corruption within

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1440-588: The group had a great influence on economic policy and successfully brought Indonesia's economy to an unprecedented growth period. The growth rate was high, averaging around 6.5% per year between the late 1960s and 1997, when South East Asia was hit by the severe Asian financial crisis . The Berkeley Mafia's liberal approach towards economics was not supported by everyone. Within the New Order, it encountered opposition from generals such as Ali Murtopo , Ibnu Sutowo and Ali Sadikin , whose economic approaches were more nationalistic in nature. Some other groups, like

1485-508: The late 1960s. They were appointed in the early stages of the New Order administration. Their work focused on promoting free-market capitalism in Indonesia and reversing many of the progressive economic reforms that had been introduced by the Sukarno government. The economic system in place under the New Order regime was termed crony capitalism due to the vast corruption within the country throughout this period. The Berkeley Mafia, like

1530-402: The liberalization, deregulation , and the renewed growth of the Indonesian economy. Once again, the Indonesian economy began to grow, and once again, the Berkeley Mafia encountered political opposition. This time, their opponents were Sudharmono and Ginandjar Kartasasmita , who advocated economic nationalism, as well as BJ Habibie , who wanted a technology-centered economic development. As on

1575-681: The management of working areas as stated earlier, other business patterns include management through projects, such as Pondok Makmur Development Project in West Java, Paku Gajah Development Project in South Sumatera, Jawa Gas Development Project in Central Java, and Matindok Gas Development Project in Central Sulawesi. Pertamina established PT Pertagas on 23 February 2007, and it became PT Pertamina Gas in 2008. The company undertakes gas transportation, trading and processing. In

1620-476: The oil and gas industry for its management, exploration, marketing and distribution, Permina and Pertamin merged and became PN. Pertamina. It continued to do little drilling itself but made production-sharing agreements with foreign companies. After the merger, Pertamina's production rose considerably (about 15% each in 1968 and 1969, and nearly 20% in 1973). By the end of 1973, it produced 28.2% of Indonesia's oil, with agreements of Caltex and Stanvac to produce

1665-500: The post-Suharto Reform era . Widjojo Nitisastro became an economic advisor to presidents B. J. Habibie , Wahid (Gus Dur) , and Megawati . Emil Salim later served as the leader of the Presidential Advisory Council during Susilo Bambang Yudhoyono 's administration and also continued to be active on environmental issues, both in Indonesia and in international circles. Mohammad Sadli remained well-known as

1710-541: The previous occasion, Suharto sided with the economic nationalists, and the Berkeley Mafia's power weakened. During Indonesia's economic collapse from the 1997 Asian financial crisis , people blamed the Berkeley Mafia and considered it to be part of the New Order regime. During the Reform era, only Widjojo was retained in the government. Out of the Berkeley Mafia group, only Widjojo Nitisastro and Emil Salim continued to have significant influence within government during

1755-474: The rest (67.8% and 3.6%, respectively). Its assets included seven refineries , oil terminals , 116 tankers , 102 other vessels and an airline. It was also active in cement , fertiliser , liquid natural gas , steel , hospitals , real estate , a rice estate, and telecommunications . The 1974 oil price increases produced revenues of USD 4.2 billion in that year, equivalent to approximately one-sixth of Indonesia's gross domestic product. Much of this revenue

1800-455: The ruling elite, revenue from Pertamina was "an ongoing source of funding" without accountability. "They ran this cash-cow into the ground, using it for both military and personal ends." Historian Adrian Vickers describes the endemic corruption at Pertamina: "At each stage of the transaction chain, somebody was getting a percentage... If accidents occurred, as in 1972 when eighty impoverished people died... they could be covered up." In 1973,

1845-558: The seminar. During the seminar, the economists set out their ideas and policy recommendations. Their presentation impressed Suharto, who invited them to begin work as a team of experts in the field of economics and finance. On October 3, 1966, on the advice of these economists and others, Suharto announced a program aimed at stabilization and rehabilitation of Indonesia's economy. The Berkeley Mafia focused on low inflation, fiscal constraint, and market deregulation. The program also aimed at rehabilitation of infrastructure and development of

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1890-434: Was announced that the plans for the first refinery had been cancelled. At the same time, the government said that there were plans for yet a different refinery project which would be constructed solely by Pertamina and funded by the state. The crude oil for this alternative project was expected to be supplied from Iraq. Pending further progress on these large investment plans, Pertamina has announced (late 2014) plans to upgrade

1935-746: Was established on 14 September 2005, is a subsidiary of PT Pertamina (Persero) that focuses on the upstream oil and gas business. In the Cepu Block, Pertamina has a 45% interest in partnership with Mobil Cepu Ltd (as the operator) and the Regional Owned Enterprise (BUMD) that manages the KKS for the Cepu Block. PT PDSI was established on 13 June 2008 as a drilling service management business entity. The services provided comprise drilling, workover activities, and drilling services that use

1980-405: Was planned to be built by Pertamina in partnership with Kuwait Petroleum , while the second was expected to be built by Pertamina in co-operation with Saudi Aramco . Total investment was expected to be around $ 20 billion. One main problem holding up an agreement to build the refineries was the issue of financial concessions to be provided for the foreign investors. Eventually, in September 2013 it

2025-527: Was used by Sutowo to expand Pertamina's interests far beyond oil production to include investments in oil tankers, steel and construction. Pertamina built the Bina Graha, the presidential executive office building in Jakarta . The global oil crisis of the 1970s greatly increased oil prices and thus Pertamina's profits. The company initially provided a fiscal lift to the hopes of Indonesia's development planners . For President Suharto and other members of

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