Pertamina Geothermal Soon a PLN Subsidiary, Pertamina
Release Date: 2012-01-25
JAKARTA (IFT) – The government plans to sell shares of PT Pertamina Geothermal Energi, asubsidiary of PT Pertamina (Persero) to PT PLN (Persero), a state-owned electricity company. Dahlan Iskan, Minister of State-Owned Enterprises, said that the decision aims to accelerate the geothermal electricity purchase and sales price negotiation between Pertamina and PLN.
According to Dahlan, one of the problems in geothermal development is the purchase and sales price. Pertamina Geothermal as a seller expects a high sales price while PLN as a buyer demands low price. The disagreement prolonged the negotiation.
"By making Pertamina Geothermal as a subsidiary of PLN and Pertamina with a 50:50 portion, there is no more long negotiation and geothermal projects can run," said Dahlan, Tuesday.
By becoming a subsidiary of two large-scale state-owned enterprises, it will b easier for Pertamina Geothermal to obtain external funding and sustain its geothermal projects.
M Sofyan, Renewable Energy Division Head of PLN, said that PLN has yet to receive information related to the plan. However, the plan is a breakthrough to accelerate geothermal development in Indonesia.
Adiatma Sardjito, Corporate Secretary of Pertamina Geothermal, refused to comment on said plan.
Komaidi Notonegoro, an Energy analyst at Refor-Miner Institute, said that the plan has several advantages. One of them is that Pertamina Geothermal’s steam price will be more affordable.
Pertamina Geothermal is a subsidiary of Pertamina in managing and developing geothermal resources, including exploration, exploitation, steam production and power plant as well as consultation service, construction as well as operation and maintenance. The company also develops geothermal technology. Pertamina has a 90 percent stake in the company.
This year, the company allocates Rp 1.2 trillion on capital expenditure (capex) to drill 17 production wells and two exploration wells. The company targets that the steam production volume to reach 1.8 million tons this year which grow 12 percent from actual volume of 14.88 million tons last year.
The electricity production is estimated to increase from 1,969.44 gigawatt hours in 2011 to 2,364.11 gigawatt hours because geothermal power plant of 2 x 55 megawatts in Ulubebe, Lampung and 20 megawatts Lahendong IV in North Sulawesi begin their operation.
Pertamina Geothermal estimated that 2011’s revenue rose 18 percent to Rp 1.3 trillionfrom Rp 1.1 trillion due to an increase in electricity sales.
| Type: | NORMAL |
| Company: | Pertamina |
| Country: | 印尼 |
| Url: | http://en.indonesiafinancetoday.com/read/16232/Pertamina-Geothermal-Soon-a-PLN-Subsidiary |