Pertamina

PT Pertamina (Persero), formerly abbreviated from Perusahaan Pertambangan Minyak dan Gas Bumi Negara (lit. 'State Oil and Natural Gas Mining Company'), is an Indonesian state-owned oil and natural gas corporation based in Jakarta. It was created in August 1968 by the merger of Pertamin (established 1961) and Permina (established 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, of which the company is included, Pertamina 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. Ibnu 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 the entire archipelago. Permina founded the Apprentice Technical School (Sekolah Kader Teknik) in Brandan to train and produce experts in the field. To meet this goal Permina established the Oil Academy in Bandung in 1962. Oil Academy's curriculum pertains to the technical aspects of the oil industry, and the graduates became the main forces of Pertamin (which later transformed to Pertamina). In 1960, the Provisional People's Consultative Assembly enacted a policy that the mining of Indonesian oil and ground gases are only permitted for the state, through a state-administered company. Pertamin, established in 1961, 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.