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Indonesia to form ‘world’s largest’ geothermal holding firm
The government appears set to steam ahead in developing the country's geothermal potential, with a plan to form a joint geothermal holding company by merging three SOEs.
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Steam rises from a chimney on Jan. 13, 2020 at PT Geo Dipa Energi's geothermal power plant in the Dieng working area (WKP) in Wonosobo, Central Java. The government announced on Feb. 22, 2021 a plan to merge Geo Dipa with PLN subsidiary PT PLN Gas and Geothermal (PLN GG) and Pertamina PT Pertamina subsidiary Geothermal Energy (PGE) to form a joint holding company to exploit the country's geothermal potential. (Antara/Anis Efizudin)
T
he State-Owned Enterprises (SOEs) Ministry plans to merge PT Geo Dipa Energi, PT Pertamina Geothermal Energy (PGE) and PT PLN Gas and Geothermal (PLN GG) this year to form a giant geothermal holding company to push green energy use in the country.
Together, the three companies have an installed geothermal capacity of 1,022.5 megawatts (MW), or nearly half of Indonesia’s 2,130.7MW installed capacity, according to the Energy and Mineral Resources Ministry.
“The joint [geothermal holding] company will be the biggest in the world in terms of installed capacity,” SOEs Deputy Minister Pahala Mansury told The Jakarta Post by text message on Feb 22.
“The holding company will combine their strengths in development or drilling, in transmitting energy to end users and in financing,” he said.
Indonesian Geothermal Association (INAGA/API) chairman Priyandaru Effendi said the merger would enable the three companies to better manage human resources, combine capital and execute the government’s geothermal program.
“[The holding company] will carry out the government’s mission of optimizing and accelerating geothermal development,” he told the Post by text message on Monday.
Of the three companies slated to form the as-yet-unnamed joint holding company, PLN GG and PGE are subsidiaries of two state-owned energy giants: the former a subsidiary of state electricity company PLN and the latter a subsidiary of oil and gas holding company Pertamina. The two energy giants are respectively the first and fourth largest SOEs by assets.
