Work continues on Indonesian geothermal state holding co.

Karaha Bodas geothermal power plant, West Java, Indonesia (source: Gunawan Sutrisno)

While sharing some of the criticism of the planned establishment of the state-owned geothermal holding company to incorporate Pertamina Geothermal Energy, PLN GG and Geo Dipa Energi, a recent article sheds some light on the ongoing work on the merger.

Currently, the process of transferring assets and establishing a BUMN Geothermal holding is being carried out by Mandiri Sekuritas as the lead consultant. Confirmed regarding the latest process, Mandiri Sekuritas ensures that the asset consolidation process is still ongoing. “Still on going,” said Harold Tjiptadjaja, Director of Mandiri Sekuritas, in a statement to Kontan today.

The process in August is to transfer the assets of PLN GG and Indonesia Power to Pertamina Geothermal Energy (PGE). After that, the assets are to be transferred from Geo Dipa.

Special Staff to the Minister of SOEs, Arya Sinulingga, said that currently his group is still calculating the total assets owned by Pertamina and PLN. “So later if his position (in holding) is in accordance with the number of assets owned, it will be fair for him and both owners,” said Arya.

He added that PT Geo Dipa Energi would use a different method in establishing this holding. Unfortunately, Arya still has not detailed further about the method that will be used.

What is clear, the Ministry of SOEs ensured that the main focus is currently completing the consolidation of assets of PT PLN Gas and Geothermal (PLN GG) and PGE first, even though word got out that the process was still tough.

Previously, Deputy Minister of BUMN I Pahala Mansury revealed that PGE was considered the most potential to become the holding company for Geothermal BUMN. “Indeed, currently it seems that the most potential to become a holding (parent) is Pertamina Geothermal. But we are continuing to discuss this,” said Pahala some time ago.

PLN Executive Vice President Corporate Communications and CSR Agung Murdifi explained, “This holding will maintain the affordability of electricity tariffs for PLN customers because it will apply additional load efficiency for the supply of electricity.

“So, if someone says that this holding is not nationalist, it is contradictory. Before there was a holding plan, the existing management was fragmented, the added value was small, and there was a bargaining position to stakeholders,” said Agung.

Therefore, he hopes that all parties, including trade unions, will support the establishment of this holding.

Source: Kontan