Indonesia plans IPO for state geothermal holding by Q4, 2021
The Indonesian government plans to get the three state-owned geothermal companies ready into one holding company ahead of a planned Q4 2021 initial public offering on the stock market.
Deputy Minister of State-Owned Enterprises (BUMN) Pahala Mansury said that the consolidation of geothermal assets owned by Pertamina Geothermal Energy, PLN GG and Geodipa will be completed in May this year.
Pahala explained that this consolidation effort was a step that had to be done before the Initial Public Offering (IPO). With the finalization of the asset consolidation predicted to be completed in May, the IPO is targeted to be carried out in the fourth quarter of this year.
“The synergy of the three, in my opinion, is very important to be able to develop geothermal assets. The plan is to have an IPO in the fourth quarter of this year,” said Pahala in an interview with news outlet Kontan, recently. However, Pahala did not want to specify the target funds for the IPO implementation later.
Pahala added, with the synergy of the three companies, it is hoped that geothermal development can be accelerated. With Pertamina which has the capability in geothermal drilling and development, PLN on the side of purchasing electricity and Geodipa in the field of government drilling and financing, it is hoped that the target of increasing geothermal capacity can be achieved.
Pahala continued, the government is targeting the installed geothermal capacity, which is currently around 1.2 GigaWatt (GW), to increase above 3.3 GW in 2024.
In addition to increasing capital, the consolidation of assets and the implementation of IPO is expected to increase transparency and accountability of the company. “This is one thing to improve governance because there are more people staring at it, people’s expectations will also be formed,” concluded Pahala.
The latest SOE Ministry has appointed a consultant to design the formation up to the floor on the stock exchange. There are three companies that will join, namely PT Pertamina Geothermal Energi, PT Geo Dipa Energi, and PT PLN Gas & Geothermal. President Director of PT Geo Dipa Energi Riki F. Ibrahim revealed that currently, a consultant is making an analysis study.