Govt to etablish new geothermal firm this year: Minister

The government is targeting to complete the merger of PT Pertamina Geothermal Energy (PGE) and PT Geo Dipa Energy by the end of this year so that the new company would be able to support the government's Part II of 10,000 MW power development program, Bisnis Indonesia reported on Monday.

Minister of State Enterprises Sofyan A. Djalil said in Jakarta last week that the new firm to be established from the merger of the two geothermal companies would directly oversee geothermal power plants to be built under the 10,000 MW Part II program.

The government would inject additional capitals into the new company to ensure that it would be able carry out its task more effectively, he said.

The government will begin the 10,000 MW Part II program as soon as the current crash program is completed within the next two years. Unlike the Part I program which is conducted to provide addition power supply of 10,000 MW from coal-fired power plants, the Part II program will be carried out to provide additional power supply of another 10,000 MW from geothermal and hydro power plants.

PT Pertamina Geothermal Energy (PGE) is a wholly owned subsidiary of state owned oil and gas company PT Pertamina. Currently PGE owns 15 geothermal working areas which reserves able to generate up to 8.480 MW. The firm's installed capacity is currently 852 MW.

Meanwhile PT Geo Dipa Energi is 67 percent owned by Pertamina and 33 percent by state owned electricity company PT Perusahaan Listrik Negara (PLN). At present it operates two geothermal power plants, that is Dieng with a capacity of 1 x 60 MW and Patuha with a potential capacity 400 MW. (*)