PGEO Narrows Shares Majority Of The Co-Generation Project With PLN

JAKARTA - PT Pertamina Geothermal Energy Tbk (PGEO) confirmed that it will become the majority shareholder in the co-generation project in the joint venture (JV) with PT PLN Indonesia Power.

PGEO Finance Director Yurizki Rio said that some time ago he seemed to have held talks with PLN regarding who would be the largest shareholder in this project.

"About last month we had come to an agreement, but we are 51 to 71 percent and the control and consolidation remain at PGE level," Rex said, Yurizki's nickname to the media crew quoted on Thursday, March 27.

He added that currently PGEO is negotiating related to agreement shareholders with PLN IP. Meanwhile, regarding the tariffs to be imposed on electricity generated, Rex said that the parties agreed to use the reference from Presidential Decree No.112/2022 concerning Acceleration of Renewable Energy Development for the Provision of Electricity Power

"If it is calculated, currently our average selling price in electricity is around 8 cents," he continued.

Present on the same occasion the Director of Exploration of PGEO, Edwil Suzandi said, this project is planned for a commercial operation date (COD) in December 2026 after the approval of a consortium with PLN in September 2024.

"Our conversation (with PLN) is far away. Hopefully, our mid of this year will be able to submit the IPP proposal," he continued.

Edwil added, for early stage development, this co-generation project will have a capacity of 45 MW.