Pertamina to team up with PLN, local administrations to exploit geothermal energy

State oil and gas company Pertamina plans to team up with state electricity company PT Perusahaan Listrik Negara (PLN) and local administrations to exploit the potentials of geothermal energy across the country.

Pertamina president Baihaki Hakim said Pertamina was interested in entering into geothermal energy business because of the huge geothermal energy potentials in the country, enough to create 20,000 megawatt of electricity.

"Considering such huge potentials, we will form joint ventures with PLN and local administrations to exploit it. So, we will do business not only in oil and gas sector, but also in geothermal energy sector," Baihaki said.

He noted that Pertamina currently had three alternatives in exploiting geothermal. First, Pertamina, in cooperation with its contractors, sell geothermal to PLN. Second. Pertamina, in cooperation with contractors, build geothermal power plant and sell the electricity to PLN. And third, Pertamina will sell geothermal to private power plants.

In the future, Baihaki said Pertamina would pursue other alternatives. First, Pertamina will team up with state owned enterprises or private entities to build power plant and sell the electricity to PLN. Second, Pertamina will own stakes at independent (private) power producers. And third, Pertamina will team up with PLN and local administration to exploit geothermal energy. (*)