Raising IPO Fresh Funds of IDR 9.05 Trillion, PGE Will Increase Geothermal Capacity to 1.27 GW

Geothermal illustration (Photo: Antara)

JAKARTA - PT Pertamina Geothermal Energy (PGE) held an initial public offering (IPO) on the Indonesia Stock Exchange today, Friday 24 February.

In this corporate action, PGE, which has the ticker code PGEO, will release 25 per cent of its shares with a target of obtaining funds of up to IDR 9.05 trillion.

President Director of PT Pertamina Geothermal Energy Tbk, Ahmad Yuniarto, said in his remarks that this corporate action was carried out to support the Company's plan to develop the Company's installed capacity of 600 MW until 2027.

"The company targets to increase its own installed capacity base, from the current 672MW to 1,272MW in 2027", he said in his remarks, Friday 24 February.

Ahmad further explained that PGE registered with the issuer code PGEO and had completed roadshows to several countries other than Indonesia, including Singapore, Hong Kong, London and New York to invite domestic and foreign investors to participate in the initial public offering (initial public offering/IPO) Pertamina Geothermal Energy.

"PGE has succeeded in attracting qualified domestic and multinational investors to participate in PGE's IPO", continued Ahmad.

Several domestic and multinational investors participating in PGE's IPO include the Indonesia Investment Authority (INA) and Masdar, a clean energy company headquartered in the United Arab Emirates (UAE).

Just so you know, the Company's IPO Public Offering experienced excess demand, aka oversubscribed, up to 3.81 times the portion of the pooling, exceeding the previously set target. This is a very bright achievement for the Company and a positive indicator of the level of investor confidence in PGE.

Based on information and data from the prospectus, geothermal power generation capacity in Indonesia is expected to grow strongly from around 2.8GW in 2022 to around 6.2GW in 2030, with a CAGR of around 10.4 per cent, compared to the average growth globally at a CAGR of around 3.9 per cent in the same period.

By 2030, Indonesia will have the largest geothermal capacity in the world, contributing 28 per cent of the projected global net geothermal capacity. This growth is supported by the significant potential of Indonesia's geothermal resources, rapid market demand growth and policy support as a key part of the government's roadmap to increase the contribution of renewable energy in the national energy mix.

PGE currently manages 13 Geothermal Working Areas with a total installed capacity of 1,877 MW. In detail, a capacity of 672 MW is managed directly (own operation) and 1,205 MW through a Joint Operation Contract scheme. The 672 MW PLTP capacity that is managed directly by PGE comes from 6 Geothermal Working Areas, namely Kamojang in West Java 235 MW, Karaha in West Java 30 MW, Lahendong in North Sulawesi 120 MW, Ulubelu in Lampung 220 MW, Lumut Balai in South Sumatra 55 MW and Sibayak in North Sumatra 12 MW.