PT Pertamina Geothermal Energy IPO allegedly already registered

Lahendong geothermal power plant, Indonsia (source: Pertamina Geothermal Energy)

PT Pertamina Geothermal Energy (PGE) part of PT Pertamina (Persero) is reported to have registered in the early stages of listing on the stock exchange or Initial Public Offering (IPO), so news broken by CNBC Indonesia last week. This was stated directly by the Deputy Minister of BUMN I Pahala Mansury.

PT Pertamina Geothermal Energy is the one of the largest geothermal operators worldwide with five geothermal power plants operating in Indonesia. The overall power generation capacity stands at 672 MW with the plants of Wayang Windu, Darajat, Gunung Salak, Sarulla and Bedugul.

“Preparations are already underway. We have registered or registered in the early stages. God willing, in 2022,” Pahala told CNBC Indonesia. Meanwhile, the public offering of shares is intended to increase the transparency of PGE’s performance going forward. In addition, it is also an effort to increase investment while searching for strategic partners who want to enter into IPO transactions.

Previously, he mentioned that the target for the funds raised from this IPO could reach US$ 400 million to US$ 500 million or around Rp. 7.15 trillion (assuming an exchange rate of Rp. 14,300 per US$). According to him, the IPO plan is to develop the geothermal business, particularly Pertamina and Indonesia in general.

Indonesia is said to have with around 24,000 MW the second largest geothermal resource in the world, which remains though largely untapped. Today, the country is ranked number two in the world after the United States in terms of geothermal power generation capacity.  The current utilisation therefore stands at only roughly 9% and could see much larger development.

Pertamina Geothermal Energy’s Corporate Secretary, Muhammad Baron, was reluctant to explain in detail the stages of implementing the company’s IPO. What is clear is that he said that PGE remains focused on running the Geothermal Business and continues to develop its existing potential. “All efforts in implementing the development are currently in process and are always in coordination with shareholders,” said Baron to CNBC Indonesia.

Source: CNBC Indonesia