TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Govt to solve PLN-Pertamina geothermal dispute

  • Ayomi Amindoni

    The Jakarta Post

Jakarta   /   Thu, January 7, 2016   /  07:05 pm
Govt to solve PLN-Pertamina geothermal 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)

The State-Owned Enterprises (SOE) Ministry has pledged to solve the running disagreement between two state-owned companies, PT Pertamina and PT Perusahaan Listrik Negara (PLN), over steam pricing at plants in Kamojang, West Java.

SOE Ministry deputy of energy, logistics, zones and tourism Edwin Hidayat Abdullah said that he had spoken with PLN and Pertamina Geothermal Energy (PGE), a Pertamina subsidiary that supplies steam-based electricity to PLN'€™s grid.

"I have discussed the issue with PGE and PLN, but we are still in the process [of coming to an agreement]. I have also made a report to the SOE minister about this issue. It is being taken care of," said Edwin at the PLN office in Jakarta on Thursday.

Both companies reached an impasse in steam price negotiations to renew the electricity purchase deal from PGE's Kamojang plants. Kamojang geothermal wells supply steam to a 140 megawatt power plant owned by PLN.

PLN director Nasri Sebayang said that the state-owned electricity provider offered a purchase price of 3 to 4 US cents per kilowatt-hour (KwH). Under the previous agreement, which expired at end 2015, PGE sold steam power to PLN at 6.2 US cents per KwH. 

"We considered the 6 US cents per Kwh [offered by Pertamina] to be too expensive," he said.

Nasri insisted that the tariff was proposed after a verification and price survey at geothermal steam fields owned by PLN, namely Mataloko plant and Ulumbu plant in Flores, that claimed to show that Kamojang's steam price would not exceed 4 US cents.

Earlier, PLN spokesman Agung Murdifi said that Pertamina had offered an unreasonable steam price regardless of the 32 years of cooperation between the two companies.

'€œWhat makes me confused, was that all of sudden Pertamina was offering a high price," he said in a statement to thejakartapost.com.

Pertamina's vice president of corporate communications Wianda Pusponegoro said that PGE would stop selling steam to Kamojang plants next month if disagreement over the price was not resolved.

"It is very unfortunate, as it may set a bad precedent for other efforts to develop geothermal and renewable energy in Indonesia," she said. (ags)

Your premium period will expire in 0 day(s)

close x
Get 50% off for Premium Subscription

Renew your subscription to get unlimited access