IPO of Pertamina Geothermal Energy targeted for Q1 2023

Lahendong geothermal field, North Sulawesi (source: PGE)

The initial public offering (IPO) of shares from PT Pertamina Geothermal Energy (PGE) is targeted to be officially sold in the first quarter of 2023. Listing of shares on the Indonesia Stock Exchange (IDX) is the main strategy to increase the company’s value capitalization.

SOE Deputy Minister I, Pahala Mansury revealed, the implementation of the IPO was also carried out to increase transparency, accountability and corporate governance.

In addition, companies conducting IPOs aim to obtain funding diversification. As is known, as long as the funding obtained by PGE only comes from its parent company, namely PT Pertamina (Persero) with funding from the capital market.

The IPO implementation by PGE is also expected to be able to optimize several working areas (WK) of PGE’s PLTP (geothermal power plants) which are already operating through the development of Lumut Balai Unit 2 and Hululais Units 1 & 2.

Not only that, the IPO proceeds will also be used to optimize the use of co-generation technology using binary technology, to generate additional capacity by utilizing brine , low pressure , and bottoming units .

PGE will also develop the WK it already has, and make collaborative efforts with other SOEs and Geo Dipa Energi for further development.

In addition to the development of WK which PGE owns, the IPO step is also expected to enable the company to optimize the CA that has been submitted by PLN and Geo Dipa Energi to develop additional Geothermal Energy to help achieve an energy mix of 23 percent in 2025. 

The IPO conducted by PGE also aims to increase Geothermal installed electricity capacity by 600 MW, which will be developed in 2023 to 2027.

Through the IPO, PGE will be able to significantly increase the use of Geothermal energy in order to go towards zero carbon by 2060. 

Source: GeoCorner