Pertamina supports transformation of subsidiary PIS

Pertamina supports transformation of subsidiary PIS

Illustration - PT Pertamina International Shipping LPG Freighter ship. ANTARA/HO-Pertamina International Shipping/FR

This transformation is a strategic move mandated by Pertamina, as a shareholder, in order to reach the target that it had planned.
Jakarta (ANTARA) - State-owned oil and gas giant PT Pertamina (Persero) continues to support the transformation process of its subsidiary, PT Pertamina International Shipping (PIS), from a sub-holding shipping firm to a sub-holding integrated marine logistics firm.

"This transformation is a strategic move mandated by Pertamina, as a shareholder, in order to reach the target that it has planned," President Director of PIS Erry Widiastono noted in a written statement received here on Saturday.

He opined that this transformation was being conducted, so that PIS can move quickly in developing its business portfolio in the global market.

The PIS transformation offers a plethora of benefits from the business and non-business standpoints.

Thus, PIS can now independently conduct strategy and business optimization through collaboration with domestic and international partners in order to boost the operational capability in marine loading, marine services, and logistics.

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In addition, the company can obtain financial funding independently from banking institutions, both domestic and abroad.

It will additionally encourage PIS to have professional and qualified manpower, manage the company transparently in accordance with good corporate governance or GCG, and operate the company reliably and efficiently, so that it would become credible and reputable in the eyes of customers and investors.

Pertamina International Shipping has several programs with designated targets.

One of the programs is hitting the EBITDA -- Earnings before interest, taxes, depreciation, and amortization -- target above US$300 million, with net profit of around US$110 million.

PIS also targets to generate revenue of over US$2 billion in order to support Pertamina's goal of reaching Global Fortune 500's top 100 world corporations, with a US$100-billion valuation by 2024.

In order to achieve those targets, PIS has to expand its business through ocean loading between seaports in Indonesia and increase its export and import cargo loading operations. 

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