Pertamina Saves Nearly $370m From Cost-Cutting Efforts
BY :RANGGA PRAKOSO
SEPTEMBER 27, 2015
Jakarta. State energy firm Pertamina has as of August saved up to $369.52 million in its strategy to trim expenses amid a depreciating rupiah and weak global oil prices.
The company has rolled out a range of efficiency efforts this year, from streamlining the procurement of goods and services, as well as crude oil and fuel, to optimizing its supporting assets and reducing losses in oil distribution, said Pertamina vice president of communications Wianda Pusponegoro.
Pertamina aims to save up as much as $500.42 million by the end of the year, while avoiding a massive lay-off, Wianda said.
"Pertamina has yet to make any employees redundant. All 16,000 of our employees are still working for us. Management is working very hard to keep operations going as usual amid the current [economic] conditions," Wianda told reporters on Friday.
The state company has also been able to shield itself from the weak rupiah exchange rate, which has depreciated by 18 percent this year, thanks to its $2.5 billion hedge facility from three state lenders.