The Jakarta Post
State electricity company PLN is set to acquire a stake in state energy giant Pertamina in PT Pertamina Geothermal Energy (PGE) as part of efforts to speed up geothermal power supply to the electricity firm.
Pertamina currently holds a 100 percent stake in PGE. Pertamina president director Dwi Soetjipto said the company was currently conducting due diligence on the acquisition, highlighting its willingness to sell some of its stake in PLN for the greater good of the nation.
It is expected that the acquisition will help accelerate the development of geothermal power plants in Indonesia.
Soetjipto said Pertamina's goal was to help PGE grow and help the government tap into the country’s 29,000 MW of geothermal energy potential.
"Currently, PGE itself has only installed 450 MW. We are targeting that in the next three to four years, it can reach above 1,000 MW," Dwi said on the sidelines of the 4th Indonesia International Geothermal Convention and Exhibition (IIGCE) on Wednesday.
PLN President Director Sofyan Basyir said the acquisition plan was partly to meet the 7,000 MW geothermal power plant target set by the government. In total, only 1,600 MW of the nation’s geothermal energy potential is being utilized.
“[With the acquisition] we will have a greater ability to conduct geothermal explorations," he said, adding that the plan would likely decrease the high prices of geothermal power. (ebf)
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