Purbaya moves to monthly compensation payments for Pertamina and PLN

Danantara CEO Rosan Roeslani has welcomed the government’s change in the compensation payment scheme for state-owned enterprises (SOEs) such as oil and gas giant PT Pertamina (Persero) and state electricity firm PT Perusahaan Listrik Negara (Persero) (PLN).

Finance Minister Purbaya Yudhi Sadewa has issued Regulation No. 73/2025, shifting the compensation mechanism from quarterly payments of 100% to monthly payments of 70%.

 “We highly appreciate this and thank the Finance Minister for the excellent cooperation,” Rosan said after attending a hearing with Purbaya and the House of Representatives (DPR) Commission XI on Thursday (Dec. 4). Danantara, Indonesia’s strategic investment fund, oversees and consolidates the country’s SOEs.

Rosan said Danantara is also working to improve the efficiency of compensation claims and subsidy disbursements. He noted that efforts to streamline the process have already begun at state-owned fertilizer producer PT Pupuk Indonesia (Persero).

 “For example, at Pupuk we have shifted from the cost-plus pricing method to market-based pricing, which gives us stronger incentives to be efficient,” he said.

Under the cost-plus method, a company sets selling prices by adding an expected profit margin on top of total production costs. Rosan said that even though the method was less efficient, Pupuk still received compensation from the state budget, making reforms necessary without reducing public entitlements.

Purbaya said the new payment structure will help strengthen cash flow at Pertamina and PLN.

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 “They no longer need to borrow from banks. This significantly reduces their financing costs. Subsidies continue to be paid directly, while compensation will now be paid 70% each month for nine months, with the remaining 30% disbursed in October,” he said.

The Finance Ministry’s PMK No. 73/2025 governs the procedures for calculating, paying, and reporting compensation to SOEs for revenue shortfalls arising from government-regulated fuel prices and electricity tariffs. The regulation took effect on November 19, 2025.

Under the new system, Pertamina and PLN will receive 70% of compensation funds monthly starting next year. The remaining 30% will be paid after the Financial and Development Supervisory Agency (BPKP) completes its annual audit of compensation claims. The audit is scheduled for completion each September, with final payments made thereafter based on verified results.

The government provides financial compensation to Pertamina and PLN because both companies are required to sell essential energy products—such as fuel oil, LPG, and electricity—at government-determined prices below market cost. They are also mandated to carry out public service obligations to ensure equitable access to energy throughout the country.

Editing by Reiner Simanjuntak