Pertamina Fire Incident Worsens PGEO's Performance

Illustration. (Photo: Doc. Antara)

JAKARTA - The fire incident that often occurs in the core business infrastructure of PT Pertamina (Persero) is claimed to provide negative sentiment towards the performance and stock investors of PT Pertamina Geothermal Energy Tbk (PGEO).

Within one month, another fire broke out at the Pertamina Refinery Unit II refinery in Dumai City, Riau on Saturday, April 1 evening. Previously, Plumpang's BBM Terminal exploded and caught fire on March 3.

Not long ago, the tanker MT Kristin, which was carrying Pertalite-type subsidized fuel rented by Pertamina International Shipping, caught fire in the waters of Lombok, West Nusa Tenggara. No less, of the 3 incidents, at least 25 people died and dozens were injured.

Member of Commission VII DPR RI Mulyanto said the incident worsened Pertamina's image in the eyes of the world, especially the image in the eyes of investors. Pertamina's management should be able to mobilize all human resources' potential to secure managed assets, including its subsidiary.

In addition to the many fatalities, the performance of its subsidiaries was also affected which affected investors in running. The work area and production facilities of Pertamina are vital state objects, national strategic assets," he told reporters, Tuesday, March 4.

Pertamina's poor image, he explained, had an impact on its subsidiaries who had been listed on the stock exchange.

"His performance could be blocked because he considers that he does not comply with HSE. If those who have not been listed on the stock exchange, his image will be tarnished as a subsidiary of a government business entity," he said.

As is known, PGEO's shares have been free since they first took the floor on the Indonesia Stock Exchange (IDX) on February 24, 2023. At that time or during the IPO, PGEO's shares were released in the price range of IDR 875 per share.

After about a month of trading, PGEO's shares fell to 24.57% of the price range of 650-660 per share at the close of trading Wednesday, April 5, 2023. In fact, PGEO's shares have experienced lower auto rejects (ARB) many times in several trading sessions.

Previously, many parties regretted the negligence of the oil and gas SOEs in managing their business. Management is considered to take care of more businesses that are not mandated to Pertamina.

Currently, Pertamina is recorded as having 13 subsidiaries, referring to data as of December 31, 2021. Previously, this state-owned company was recorded to have 127 subsidiaries which were then cut in line with the restructuring.

Recently, Pertamina released 25 percent of its subsidiary shares, namely PT Pertamina Geothermal Energy Tbk (PGE). The plan is that similar corporate actions will also be followed by PT Pertamina Hulu Energi (PHE) this year.