In the 1950s, when the administration of the state began to normalize after the war for defending the independence, the Indonesia government authority began to inventory the sources of state revenue, including oil and gas. In that period, the management of oil fields that had been previously controlled by the Dutch was uncontrollable and disputed.
In North Sumatra, for instance, many small companies had all attempted to gain control of these oil fields.
In order to resolve these disputes, the government handed over control to the Indonesia Army, which established PT Eksploitasi Tambang Minyak Sumatera Utara. This company subsequently changed its name to PT Perusahaan Minyak Nasional, or PT PERMINA, on 10 December 1957.
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