Iceland firm drops Indonesian geothermal investment plan

Iceland geothermal firm Reykjavik Energy has pulled out from joint venture plan with PT.Pertamina Geothermal Energy (PGE) to develop projects in Indonesia, a PGE official said on Friday.

PGE CEO Abadi Poernomo said Reykjavik canceled investment plan due to global crises that affected its financial condition. PGE is a geothermal subsidiary of state oil, gas firm PT.Pertamina.

Earlier reports said that both companies will team up to build Kotamobagu project in North Sulawesi and Hulu Lais project in Bengkulu. (bernard)