PT PLN Gas & Geothermal developing 8 geothermal projects in Indonesia as PLN subsidiary

PT PLN Gas & Geothermal developing 8 geothermal projects in Indonesia as PLN subsidiary Lahendong Geothermal Power Plant in Indonesia (source: ADB, Courtesy of CPI)
Alexander Richter 23 Aug 2019

PT PLN Gas & Geothermal, a subsdiary of state-owned utility PT PLN, is developing eight geothermal working areas in Indonesia with a target to be operational by 2023 or 2024.

We stumbled across a rather interesting company profile shared by Panas Bumi News in Indonesia, that provides a good overview on PT PLN Gas & Geothermal (PLN GG). The company is relatively newly established and a subsidiary of national utility PT PLN (Persero).

Initially the company was only to focus on geothermal fields, and with the notarial deed of the establishment of Notary Lenny Janis Ishak SH Number 10 dated January 28, 2009 and Decree of the Minister of Law & Human Rights No. AHU-11269.AH.01.01.Tahun 2009 dated April 6, 2009, the company immediately moved developing several geothermal projects.

However, on July 10, 2017, the shareholders made the decision to add midstream gas business activities. Thus, the name of the company that was originally “PT PLN Geothermal” was changed to “PT PLN Gas & Geothermal” based on Notary Deed of Muhammad Hanafi SH number 73 dated 31 July 2017 & Decree of the Minister of Law & Human Rights Number AHU-0017016.AH.01.02. 2017. The addition of business activities and company name change are solely carried out to support the realization of the mission of PLN SOLID (Securing Business Defense, Optimizing Cost Efficiency, Leading Industry Capabilities, Increasing Profit Margin, Developing New Edge).

In the page stated, PT PLN GG was established to guarantee the security of supply and cost efficiency for PLN. In the geothermal field, since its establishment, PLN GG has been developing the geothermal working area of Tulehu WKP, and the geothermal power plants at Lahendong PLTP, and Mataloko PLTP. And now, the company is working on eight Geothermal Working Areas (WKP) projects that the government has assigned to its parent company, PLN.

Director of PT PLN GG, Yudistian Yunis, said, to work on the 8 WKP, his party would cooperate with five companies that had been netted by PLN.

“The 8 WKPs are targeted to be operational in 2023 or 2024,” he told reporters some time ago.

On the other hand, PT PLN GG apparently immediately step on the gas. To streamline the implementation and development of its projects, the company collaborates with Universitas Padjadjaran (Unpad) in the fields of education, research, improvement of human resources, and community service.

Managing Director of PT. PLN GG, Mohamad Riza Affiandi, said that his party cooperated with Unpad in supporting the implementation of a number of strategic projects carried out by a subsidiary of PT. PLN (Persero). More than 50 strategic projects related to gas and geothermal that are being carried out by PT. PLN GG.

“In carrying out this project, we experienced obstacles related to the environment, environmental impact analysis, environmental feasibility, and other obstacles from the regulatory and social aspects. So far, Unpad is leading in Amdal studies. Unpad studies of various projects in PLN are held by Unpad, “he said during the signing of the MOU with Unpad in May 2019.

He added, PT. PLN GG plans to build a study with Unpad on environmental impact analysis.

The top employees of PT PLN Gas & Geothermal are:

  • Commissioner: Chairani Rachmatullah
    Commissioner: Anang Yahmadi
  • President Director: Mohamad Riza Affiandi
    Director: Yudistian Yunis

Comment: With that move PLN seems to have moved the development activities into a subsidiary, while negotiations on power purchase agreements (PPAs) continues to be directly dealt with at the mother company, with all the challenges this has been entailing.