PLN to Buy Half of Pertamina's Geothermal Unit (Jakarta Globe)
Perusahaan Listrik Negara (PLN) plans to buy 50 percent interest in Pertamina Geothermal Energy, a wholly owned geothermal unit of state energy company Pertamina, by the end of this year.
PLN, the country's only buyer for all electricity, must be involved in decision making for Indonesia's largest geothermal company to accelerate development, the government has argued.
"The Energy and Mineral Resources Minister Rini Soemarno wanted this acquisition to be done this year. This is her corporate decision," said Sofyan Basyir, the president director of PLN. He did not disclose the price of the acquisition.
Sofyan added that the acquisition would eventually reduce prices PLN needs to pay for Pertamina Geothermal Energy's steam, and in turn, would reduce overall energy cost. Some Pertamina Geothermal Energy's projects in the past was shafted due to PLN's refusal to commit on buying the former's steam due to high pricing.