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Indonesia to merge its three geothermal companies

Alexander Richter Alexander Richter 26 Mar 2009

The Indonesian government is considering the possibility of merging three geothermal companies, PT PLN Geothermal, PT Pertamina Geothermal Energy, and the National Gas Company (PGN).

In Jakarta, “the government is considering the possibility of merging three geothermal companies, PT PLN Geothermal, PT Pertamina Geothermal Energy, and the National Gas Company (PGN), a official of the State Ministry for State Enterprises said Wednesday.”, so The Jakarta Post.

“A team to oversee the merger has already been formed and is currently in full operation,” Deputy for Mining, Strategic Industry, Energy and Telecommunication at the State Ministry for State Enterprises Sahal Lumban Gaol said, as quoted by state news agency Antara.

According to Gaol, all three companies want a merger but have yet to agree on whether it will take the form of a complete merger or a holding company.

“What’s important…they agree that BUMN geothermal development is very important in the effort of finding alternative sources of energy,” he said.

He added that Indonesia’s relatively untapped geothermal industry carries immense potential for development, especially in the Patuha and Dieng mining fields. “Indonesia’s geothermal potential is the best in the world,” Gaol argued.

State Minister of State Enterprise Sofyan Djalil has approved the merger plan, citing efficiency as the main factor.

“The presence of state-owned geothermal sector carries the potential to ease government energy subsidies that can be transferred elsewhere,” Djalil said.

He also said that geothermal, when compared with other sources of energy, is advantageous as it is renewable.”

Source: The Jakarta Post