Govt to merge three geothermal companies

The Jakarta Post, Jakarta | Wed, 03/25/2009 6:08 PM

The government is weighing the possibility of merging three geothermal companies, PT PLN Geothermal, PT Pertamina Geothermal Energy, and National Gas Company (PGN), a State Ministry for State Enterprises official said Wednesday.

"A team to oversee the merge has already been formed and is currently in full operation," Deputy for Mining, Strategic Industry, Energy and Telecommunication at the State Ministry for State Enterprises Sahal Lumban Gaol said, as quoted by Antara news.

According to Gaol, the three companies share a vision for the merge, though have yet to decide whether it would take place in the form of a complete merger or form a holding company.

"What's important...they agree that BUMN geothermal development is very important in the effort of finding alternative sources of energy," he said.

He added that Indonesia's relatively untapped geothermal industry carries immense potential for development, such as the Patuha and Dieng mining fields.

"Indonesia's geothermal potential is the best in the world," Gaol argued.

State Minister of State Enterprise Sofyan Djalil had approved of the merge plan for reasons of efficiency.

"The presence of state-owned geothermal sector carries the potential to ease government energy subsidy that can be transferred elsewhere," Djalil said.

He also said that geothermal, when compared with other sources of energy, was advantageous for its renewable nature. (amr)