Updates given on planned IPO for geothermal holding company in Indonesia

Muara Laboh geothermal plant, West Sumatra, Indonesia (source: Jacobs)

The Ministry of State-Owned Enterprises (BUMN) in Indonesia has announced some updates on the planned initial public offering (IPO) of a geothermal holding company. This geothermal holding will be named Indonesia Geothermal Energy and will be a merger of PT Pertamina Geothermal Energy (PGE), PT PLN Gas & Geothermal, and PT Geo Dipa Energy (Persero).

The total capacity of the planned holding company will be 1,022.5 MW – almost half of the total installed geothermal capacity in Indonesia. Early estimates have indicated that the IPO can reach a value of US$500 million or Rp 7 trillion.

We have previously reported on the asset consolidation as part of this ongoing merger process. Updates are still scarce but plans for the geothermal holding company seem to be progressing.

There is no clear timeline yet on when the IPO will be available.

Source: CNBC Indonesia