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The Jakarta Post
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PLN, Pertamina resolve Kamojang price dispute

  • Ayomi Amindoni

    The Jakarta Post

Jakarta | Fri, January 8 2016 | 06:37 pm
PLN, Pertamina resolve Kamojang price dispute Geothermal project: An officer of the Kamojang geothermal power plant checks a production drilling well in Kamojang, Garut, West Java. The Kamojang geothermal power plant is operated by PT Pertamina Geothermal Energy, a subsidiary of state-owned oil and gas firm PT Pertamina. (Antara/Wahyu Putro)(Antara/Wahyu Putro)

Geothermal project: An officer of the Kamojang geothermal power plant checks a production drilling well in Kamojang, Garut, West Java. The Kamojang geothermal power plant is operated by PT Pertamina Geothermal Energy, a subsidiary of state-owned oil and gas firm PT Pertamina. (Antara/Wahyu Putro)

Two state-owned enterprises, state electricity firm PLN and state-owned oil and gas company Pertamina, have secured a new agreement on the price of steam from the Kamojang geothermal plant, after State-Owned Enterprises Minister Rini Soemarno mediated negotiations.

In a statement on Friday, the two firms'€™ boards of directors said they had decided to end the disagreement for the sake of the public, by generating power from the plant.

The price of steam from the Kamojang plant'€™s units 1, 2 and 3 as well as four units of the Lahendong plant was confirmed at six US cents per kilowatt hour (kWh).

Meanwhile, the steam price for the Kamojang plant'€™s unit 4 was secured at 94 cents per kWh. It was based on the steam price for the plant'€™s unit 5, which was set at the same level.

The price agreement is to be set out in the new contract, which will help PLN and Pertamina to boost to 23 percent the portion of renewable power in the country'€™s energy mix by 2025, in line with government targets. (ags)

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