Here's The Fate Of Geodipa Asset Consolidation And Geothermal SOEs

President Director of PT Pertamina Geothermal Energy Tbk Ahmad Yuniarto. (Photo: Maria Trisnawati/VOI)

PT Pertamina Geothermal Energy Tbk (PGE) has confirmed that it will not conduct asset consolidation with PT Geodipa Energi and its subsidiary PLN, PLN Gas & Geothermal (PLN GG).

PGE President Director Ahmad Yuniarto explained that currently his party is focusing on Initial Public Offering (IPO).

"Regarding consolidation with Geo Dipa, we always follow directions from our stakeholder programs, in this case the Ministry of SOEs for consolidation programs is temporarily not continued," said Ahmad Yuniarto as quoted on Thursday, February 2.

He continued, with the cancellation of this consolidation, his party will focus on developing geothermal in Indonesia.

Ahmad detailed that currently PGE i manages 13 Geothermal Working Areas (WKP) spread across 6 areas with a self-operated 672 MW installed capacity and 1,205 MW managed through a Joint Operation Contract (JOC).

The capacity of geothermal installed in the PGE working area contributes about 82 percent of the total geothermal installed capacity in Indonesia, with the potential for CO2 emission approval of around 9.7 million tons of CO2 per year.

The use carried out by PGE from geothermal energy has succeeded in making 2,085,000 houses in Indonesia electrified.

Pertamina Geothermal Energy also has the ambition to increase its installed capacity base from 672 MW to 1,272 MW in 2027.

This step is in line with the mission to become a leading environmentally friendly energy company.

Previously, Minister of State-Owned Enterprises (BUMN) Erick Thohir planned 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.