Deputy Chairman Of Commission VII PGE's IPO Value Is Right

Deputy Chairman of Commission VII DPR RI Eddy Soeparno. (DOC. ANTARA)

Deputy Chairman of Commission VII DPR RI Eddy Soeparno assessed that the move by PT Pertamina Geothermal Energy Tbk (PGE) to conduct an initial public offering aka Initial Public Offering (IPO) was the right step.

Eddy assessed that Pertamina's subsidiary, which has the name of the PGEO issuer, has great potential in the country's hot industry.

"I think PGE's business prospects are quite good despite high risk and high capital, but the future EBT business prospects are high and investor interest is high. So, the prospects are bright going forward," said Eddy in a working meeting of Commission VII DPR with the Minister of Energy and Mineral Resources quoted on Saturday, March 25.

However, he admitted, the geothermal power plant (PLTP) project undertaken by PGE does require large capital.

Until 2027, Pertamina has indeed prepared a total investment of US$1.6 billion or equivalent to Rp24.2 trillion at an exchange rate of Rp15,133 per US dollar. Thus, PGE's move to hold an Initial Public Offering (IPO) in February 2023 was the right step by winning funds of around Rp9 trillion.

"With this IPO, most of it is for project initial capital, it can be implemented. It's just a matter of how PGE and partners can run it. Both national or foreign private partners. Seeing the high interest in EBET (new energy and renewable energy), I don't think PGE will have any trouble getting partners, so banks will be interested in financing PGE projects in the future," he concluded.