Pertamina Geothermal Energy IPO targeted for June 2022
The Indonesia government is targeting an IPO of state-owned PT Pertamina Geothermal Energy by June 2022, according to the Ministry for State-owned-entities.
As reported locally today, Deputy Minister for State Owned Entities (BUMN II), Pahala Nugraha Mansury said his party plans to launch PT Pertamina Geothermal Energy (PGE) Initial Public Offering (IPO) on the Indonesia Stock Exchange (IDX) forward. He targets the IPO of Pertamina’s subsidiary to be realized in the first semester of 2022.
“God willing, the target is PGE in the first semester of 2022. The target is registration in March, IPO then in June maybe,” he said in an interview, quoted yesterday.
According to him, the funding option through the IPO can maximize the development of green products, such as green hydrogen and green ammonia. Pahala observes that the use of NRE will be able to improve air quality and support the achievement of the national greenhouse gas emission reduction target.
The increase in the use of geothermal is also considered to be able to suppress national fuel imports considering that Indonesia’s current fuel consumption is around 1.2 million barrels per day.
“40% of the fuel needs are supplied from imports. Therefore, to bring clean energy in the context of creating national energy independence, local energy sources are needed, especially EBT such as geothermal,” he continued.
For the record, PGE manages 15 working areas with a capacity of 1,877 MW, with details, 672 MW are operated independently and 1,205 MW are joint operation contracts. To increase the utilization of geothermal energy, PGE is currently looking to use binary cycle plants as add on to its current operations.
Pahala said the use of geothermal is one of the easiest to develop. He hopes that the energy works can be managed by the state-owned entities themselves.
“Currently, only 9% of the geothermal area is producing with a capacity of 1,900 megawatts (MW),” he explained. ThinkGeoEnergy reported this week, that the current installed geothermal power generation capacity in Indonesia has reached 2,276 MW with the additions of Sorik Marapi unit 2 and Rantau Dedap in 2021.
The use of NRE resources is a government priority in line with the energy transition roadmap contained in the Grand National Energy Strategy.
In the roadmap, NRE is targeted to reach 23% in 2025 and reach 31% in 2020 in the energy mix. “The government encourages the use of EBT up to 20 giga watt (GW) in 2030 with the largest contribution projected from EBT,” said Pahala.