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JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir plans to consolidate SOEs that have been working on geothermal or geothermal energy such as subsidiaries of PT Pertamina and PT PLN, as well as PT Geo Dipa Energi.

The goal is to strengthen the development of new and renewable energy (EBT) in the geothermal sector.

"We have three companies that have actually done this geothermal, there is Pertamina, PLN, another one is Geo Dipa which is under the Ministry of Finance. Indeed, this takes time, I want the initial stage to accelerate this into one unit," Erick said at the Road to G20 event organized by the IPB Association, quoted Thursday, October 27.

Erick added that geothermal potential is extraordinary when compared to other types of EBT such as wind and solar panels.

Unlike wind and solar power, continued Erick, geothermal is also more consistent and has no supply constraints.

"Geothermal is extraordinary. Because this is one of the baseloads, we know that diesel and wind are limited, cannot sustain it, but the baseload is only geothermal or hydro. So why is this geothermal that we prioritize," said Erick.

With this consolidation, Erick believes that geothermal development will be much more effective and efficient than SOEs working independently.

In the early stages, Erick has also consolidated Pertamina and PGE in order to gain access to new funding for EBT, one of his choices with Go Public so as not to burden state finances or continue to increase debt.

Still, said Erick, the process of consolidating a subsidiary of Pertamina and PLN with Geo Dipa will be carried out in stages.

"In the meantime, Pertamina entered first because the PLN was still behind and Pertamina's (financial condition) was healthy so she went first," he concluded.


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