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View all search resultsBillionaire Prayogo Pangestu gets full control of Star Energy Geothermal
The Pangestu family, through investment firm Green Era Pte. Ltd, has acquired local energy firm Star Energy in a US$440 million deal.
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ndonesian billionaire Prajogo Pangestu has gained full ownership of Star Energy after closing a US$440 million deal for the geothermal power company.
Prajogo's company, Green Era Pte. Ltd, a Singapore-based renewables investment firm, acquired 250,801 shares of Star Energy, representing a 33.33 percent stake, from Thai electricity company BCPG, according to a statement published on Wednesday.
Read also: Global merger, acquisition activity smashes all-time records
The remaining 66.67 percent stake in Star Energy is still held by diversified petrochemical giant PT Barito Pacific, which is majority-owned by the Pangestu family.
Green Era managing director Nancy Pangestu said the acquisition was the first under Green Era’s merger and acquisition strategy to grow the renewable energy industry in Southeast Asia.
“This acquisition is a major milestone to effectively launch Green Era's exciting growth and investment plans moving forward,” she said in a statement.
Star Energy, through its subsidiaries, has control over geothermal energy plants in Indonesia with a total capacity of 875 megawatts (MW), including the Wayang Windu, Salak and Darajat geothermal power plants, all of which are located in West Java. In 2019, the company said it aimed to invest $2.5 billion to increase its capacity to 1,200 MW in 2028.
Read also: Economy in brief: Barito Pacific to acquire Star Energy
The acquisition comes a few years after Barito Pacific acquired the two-thirds stake in Star Energy Group Holdings Pte Ltd in July 2018. Barito partly financed the acquisition through an Rp 8.9 trillion rights issue.
Indonesia, which holds the world’s largest geothermal reserves, is aiming to have a total of 3.35 GW of geothermal power production capacity by 2030, according to the long-term electricity procurement plan (RUPTL).
Out of a potential total of 23.7 GW in geothermal resources, only 9.2 percent, 2.18 GW, has been utilized, while 1.33 GW has been allocated for expansion plans until 2035, Energy and Mineral Resources Ministry data show.
Consultancy Ernst & Young (EY) in a 2021 report found 800 clean energy projects in the pipeline in eight economies across Asia, including Indonesia, Japan and Malaysia, between August and September 2020.
Assuming all the projects are realized, there is a total potential investment of more than $316 billion in the clean energy sector, the report reads, implying a huge investment opportunity in the sector.
