PT Pertamina eyes IPO for its daughter company Pertamina Geothermal Energy
Indonesian state-owned oil company PT Pertamina is eyeing the IPO of some of its daughter companies and subsidiaries, including PT Pertamina Geothermal Energy (PGE).
News from Indonesia report, that PT Pertamina (Persero) plans to hold an Initial Public Offering (IPO) for some of its daughter companies, including PT Pertamina Geothermal Energy (PGE).
The Directorate General of New, Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources also shared their 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.
“Of course the government appreciates Pertamina for making various efforts to improve PGE’s performance, including through an IPO,” said Dadan.
The involvement of both state-owned and private business entities is needed by the government to exploit the huge geothermal potential in Indonesia. Currently, the government is also encouraging improvement in the quality of geothermal data so that it can reduce risks in its development.
“Our geothermal potential is still very large. It needs developers who have more understanding and experience,” Dadan continued.
In the next five years, PGE plans to double the installed capacity of the Geothermal Power Plant (PLTP) from the existing capacity of 672 MW to around 1,300 MW, we reported.
Currently PGE manages 14 Geothermal Working Areas (WKPs) with a total installed capacity of 672 MW which are operated alone (own operation). In addition, PGE also has 1,205 MW which is run under a joint operation contract (JOC).
On its official website, PGE’s shares are owned by PT Pertamina (Persero) with 706,204 shares (91.09%) and PT Pertamina Pedeve Indonesia with 69,052 shares (8.91%).
On the other hand, there are also rumours about the formation of a state-owned geothermal holding company. In this holding, PGE is said to be the holding company, which consists of PT Geo Dipa Energy and a subsidiary of PT PLN (Persero) which has a geothermal generation portfolio.
Regarding the discourse on the formation of the geothermal BUMN holding company, Dadan Kusdiana did not provide confirmation. According to him, the holding is fully under the authority of the Ministry of BUMN.
However, if a geothermal holding is formed, it could also go hand in hand with Pertamina’s IPO plan. “The formation of a holding can also coincide with the IPO. Regarding who will be the parent company, I think the mechanism is in BUMN,” said Dadan.
Contacted separately, BUMN observer from the University of Indonesia Toto Pranoto assessed that the IPO plan for Pertamina’s renewable energy-based business group (PGE) has good prospects. Especially in the midst of global commitments and government efforts to achieve a transition to clean energy (green energy).
In separate news it was reported that our good friend Pak Ahmad Yuniarto was appointed President Director of Pertamina Geothermal Energy, congratulations.