PT Pertamina Geothermal Energy IPO to be launched in 2022

Geothermal pipes of Pertamina, Indonesia (source: zmiyatul.blogspot)

The Indonesian Minister of State-Owned Enterprises (BUMN) Erick Thohir has announced that PT Pertamina Geothermal Energy (PGE) will launch an initial public offering (IPO) in the second quarter of 2022. The capital raised from the sales will help fund PGE’s target to double their current installed capacity within the next five years.

We reported on the plans to launch an IPO for PGE among other daughter companies of PT Pertamina. This supports the growth plans not only of PGE, but also that of state electricity company PLN. “We know how the world is now really pushing for the shift into green energy…this would also help PLN reach the 15 gigawatt shift from fossil energy,” commented Thohir.

According to Thohir, the IPO was a step by the BUMN to strengthen state-owned companies without increasing the burden on state finances. “If state-owned enterprises can independently improve in other ways but still serve the public, then this is an alternative funding.” he added.

Erick Thohir declined to provide additional details about the IPO. It is also unclear at this point how this IPO relates to the plans of consolidating the three state-owned geothermal players in Indonesia under a holding company, as we have reported.

Source: Channel News Asia and Kompas