Pertamina's Net Profit IDR 29.3 Trillion, UGM Economics Expert: This Is Extraordinary

JAKARTA - Gadjah Mada University (UGM) economic and business expert Mudrajad Kuncoro said Pertamina's net profit achievement in 2021 of IDR 29.3 trillion should be appreciated.

"This is extraordinary. An increase of 95 percent from the previous year's net profit," he said as quoted by Antara, Thursday, August 4.

Mudradjat stated that Pertamina's net profit does not need to be compared with the profit of Petronas, the Malaysian oil company which earned a profit of IDR 159.7 trillion because it is not apple to apple.

Moreover, he continued, the oil and gas SOEs must also carry out public service obligations (PSO) throughout Indonesia, which is the mandate of Article 33 of the 1945 Constitution.

Pertamina, he continued, on the one hand, as a limited liability company, is required to make as much profit as possible, but as the bearer of the PSO, the SOE must also be prepared to lose.

Because, through the PSO, the price of the subsidized products, such as Solar and Pertalite, is set by the Government.

According to him, the PSO is what distinguishes Pertamina and Petronas, moreover, the assignment received by Pertamina covers the entire territory of the Republic of Indonesia which is very wide with difficult geographical conditions.

"In addition, in practice, there must be a dilemma, between fulfilling the mandate of the Constitution and the mandate of the Law on Limited Liability Companies. Because it is related to the Law on PT, we must run 100 km/hour. poverty. Pertamina must sell subsidized products whose prices have been determined. And that is not easy," said Mudradjat.

That is why, Mudrajad gave appreciation to Pertamina for achieving the 2021 net profit of IDR 29.3 trillion.

Moreover, Pertamina also still contributes through taxes of IDR 126.7 trillion and also Non-Tax State Revenues (PNPB) of IDR 73.1 trillion.

Mudrajad said that the net profit surge of 95 percent compared to last year was due to Pertamina's success in running its efficiency well.

"Pertamina's efficiency is decent, and it must be admitted. Pertamina's cost saving has saved 1.3 billion US dollars, cost optimization saved 2.2 billion US dollars, and cost avoidance was 350 million dollars," he said.