The Ministry of State-Owned Enterprises (BUMN) is establishing a holding for BUMN Geothermal (Geothermal). The plan is that the holding will be filled by three state-owned companies that have been working on the development and operation of a Geothermal Power Plant (PLTP), as reported by Kontan. We previously reported on these plans, which now seem to be more concrete than initially reported.
The three companies are PT Pertamina Geothermal Energy (PGE), PT Geo Dipa Energi (Persero), and PT PLN Geothermal. Deputy Minister I of BUMN Pahala Mansury confirmed the formation of the geothermal holding. He described an ownership of the holding company by Pertamina, PLN, and the Indonesian government.
With these plans, it is hoped to utilise synergies by integrating, e.g. development and drilling, transmission to users, as well as with regards to funding project development. The holding company would be the largest geothermal company in the world in terms of geothermal power generation capacity.
No further details on the ongoing discussions in the formation of the holding are available and there is no indication which of the three entities will be in the lead. It is though clear that the establishment of the holding company is targeted for 2021.
Contacted separately, the establishment of a geothermal BUMN holding company also received support from the Indonesian Geothermal Association (API). API Chairman Priyandaru Effendi said that the merger of the three companies would facilitate geothermal development plans. Including optimizing human resources and increasing working capital for business sustainability.
Holding is also considered to be able to accelerate the targets assigned by the government to BUMN. “Carrying out the government’s mission to optimize and accelerate geothermal development as part of the energy security and independence program,” said Priyandaru.
In terms of the business and investment climate, the establishment of a geothermal SOE holding company is considered to maintain fairness with private developers. “In fact, it makes it easier for them (BUMN) to compete,” said Priyandaru.
PGE is also rumoured to be the parent company of the geothermal BUMN holding. On the other hand, PGE is also reportedly going to become one of Pertamina’s subsidiaries that will conduct an Initial Public Offering (IPO) this year.
Unfortunately, regarding this information, Deputy Minister I of BUMN Pahala Mansury has not confirmed it. Likewise, from PGE and SVP Corporate Communication and Investor Relations Pertamina Agus Suprijanto who have not answered confirmation requests from Kontan.co.id.
To be sure, the Directorate General of New, Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources also expressed its views on this discourse. Director General of EBTKE Dadan Kusdiana assessed that the IPO could be a strategy to strengthen PGE’s performance in optimizing geothermal utilization.
For the full details check out the article linked below.