After the War of Independence, in the early days of the Republic of Indonesia, the oil fields abandoned by the Dutch were in a chaotic state. For example, in North Sumatra, many small oil companies were battling for control of them. The government ordered in the Army to bring an end to the chaos. The Army subsequently established PT Ekspoitasi Minyak Sumatera Utara (Persero) to manage these oil and gas fields.
This company became PT Perusahaan Minyak Nasional (National Oil and Gas Company), abbreviated to Permina, on 10 December 1957. As a consequence of the policy giving the state the rights to oil & gas exploration in Indonesia, in 1960 PT Permina was restructured into the state company PN Permina.
On 20 August 1968, the president issued a decree ordering a merger between the production company PN Permina and the marketing company PN Pertamin in order to bring together the very limited workforce, capital and resources. The merged company was named PN Pertambangan Minyak dan Gas Bumi (Pertamina).
The government then supported this new company by issuing Law No. 8/1971, which named Pertamina as the only state-owned company tasked with running the oil and gas business, including the supply and provision of Indonesia’s fuel and natural gas requirements. Besides this, on the upstream oil & gas side, Pertamina was tasked with managing and processing of oil fields throughout Indonesia using various work mechanisms in cooperation with international and national oil and gas companies.
In order to optimize the processing of Pertamina’s gas products, in 1989 the Pertamina Gas Utilization Division was established to manage Pertamina’s gas business interests.
In response to the changing dynamics of the national and international oil & gas business over time, the government issued Law No. 22/2001. This law gave Pertamina the same legal status as other oil com panies. On 17 September 2004, Pertamina became a limited company with the name PT Pertamina (Persero) based on Government Regulation (PP) No. 31/2003. This was a consequence of the coming into force of Law No. 22/2001.
Among other provisions, this Law obliged Pertamina to separate its upstream and downstream oil and gas concerns. Therefore, the company changed the way it operated its gas business, which had been integrated within the Upstream Directorate through the Gas Utilization Division, by establishing a separate business entity in the form of a subsidiary called PT Pertamina Gas. Through this company, Pertamina was able to provide a better focus and to maximize the operations of its gas operations.
PT Pertamina Gas was officially established on 23 February 2007. This Pertamina subsidiary under the auspices of the Pertamina Upstream Directorate is involved in trading, transportation, processing and other businesses related to natural gas and its byproducts.
Important years in the history of the company are as follows:
1957 Establishment of PT Perusahaan Minyak Nasional (PERMINA)
1960 PT Permina becomes PN Permina
1968 PN Permina merges with PN Pertamin to form PN Pertamina
1989 Establishment of the Pertamina Upstream Gas Utilization Division
2001 The government issues Law No. 22/2001 on Oil and Natural Gas
2003 Pertamina becomes PT Pertamina (Persero)
2007 Establishment of PT Pertamina Gas