Have you ever been driving a car, suddenly the oil light flashes red and you start wondering which pump to fill up at?
As a Malaysian, the admin will prefer Petronas. Not because it's popular alone, but it's a brand of national pride as a result of the efforts and wisdom of our own people.
Recently, it's hot on social media when netizens compare Petronas with Pertamina, two government-owned energy giants from two neighboring countries, Malaysia and Indonesia.
A question arises, why does Petronas seem more successful? What's wrong with Pertamina?
Both Petronas and Pertamina were founded on the same spirit, which is to return the right to manage oil to their own countries after the era of economic colonization.
Petronas was established in 1974, under the leadership of Tun Abdul Razak. It was given the exclusive right to explore, manage, and market Malaysia's oil products.
Pertamina, on the other hand, existed earlier around 1957, as a result of the merger of two Indonesian national oil companies, Permina and Pertamin.
However, their approaches are different. Petronas was built as a professional corporate entity with a commercial focus, while Pertamina developed as a BUMN (State-Owned Enterprise) organization that also shouldered social and political responsibilities in stabilizing domestic fuel prices.
Petronas is not just a petrol pump brand. It is among the Top 10 energy companies in the world, with operations in over 50 countries. From the LNG project in Bintulu to oil fields in Sudan, Turkmenistan and Canada, Petronas has placed Malaysia on the map of the global energy industry.
According to the latest financial report, Petronas' annual revenue reached RM320 billion, with assets amounting to hundreds of billions of ringgit. It also contributes large dividends to the government, becoming a major contributor to the country's income.
However, Petronas also faces challenges, including the issue of oil and gas royalties in Sabah and Sarawak, which sometimes causes political tension between the states and the federation.
Meanwhile, Pertamina plays a key role in ensuring fuel subsidies for Indonesia's 285 million people.
It controls almost the entire national energy chain from production, processing to the distribution of petrol at thousands of stations.
But despite its large scale, Pertamina faces governance and transparency issues.
In recent years, the company has been embroiled in corruption and mismanagement scandals over fuel imports, which reportedly cost the government huge losses.
In addition, several safety incidents such as the oil depot fire have tarnished its reputation.
In the eyes of investors, Pertamina is seen as “too big to fail”, but also “too political to grow”.
People & Investors’ Perspective: Who is More Confident?
Malaysians see Petronas as a symbol of pride, not only because it generates huge profits, but also because it elevates the country’s image on the world stage.
Despite complaints about oil prices, Petronas’ image remains professional and resilient.
On the other hand, Indonesians view Pertamina closer to their hearts because it supplies cheap oil and is a ‘savior’ during the global price crisis. But at the same time, many are disappointed with the leakage and transparency of management.
From an investor’s perspective, Petronas is seen as more stable and efficient, while Pertamina is considered to have great potential with high risk.
When the people start comparing Pertamina with Petronas, it's not about who is richer, but who is more trusted in managing the nation's wealth. Because in today's energy world, image and integrity are sometimes worth far more than a barrel of oil.
