UPDATE - Masdar confirms investment in Indonesian geothermal co

Renewables developer Abu Dhabi Future Energy Co, better known as Masdar, confirmed today it has made a strategic investment in newly-listed PT Pertamina Geothermal Energy Tbk (PGE), part of Indonesian state-owned energy company PT Pertamina (Persero).

As reported earlier, PGE made its debut on the main board of The Indonesia Stock Exchange (IDX) on Friday through an initial public offering (IPO) that fetched IDR 9.06 trillion (USD 596m/EUR 556m) in gross proceeds. The Indonesian company’s CEO Ahmad Yuniarto said in a statement that a number of domestic and multinational investors have taken part in the company’s IPO and that Masdar was one of them.

The UAE-based company said separately that this investment increases its footprint in the Asia-Pacific region and particularly in Indonesia, where it is developing a 145-MW floating solar park and is exploring the development of up to 1.2 GW of solar in partnership with Tuas Power, EDF Renewables, and PT Indonesia Power.

Not only does this investment mark Masdar’s entry into the geothermal energy sector, but it also gives the company access to the second-largest geothermal market in the world, it noted.

Presently, PGE manages 13 geothermal working areas with a combined capacity of 1,877 MW, of which 1,205 MW are managed under joint operation contracts. It owns the remaining capacity and plans to increase it to 1,272 MW by 2027, while the government wants to boost the entire country’s installed geothermal capacity from 2.8 GW in 2022 to 6.2 GW by 2030.

On the other hand, the UAE investor has a goal of achieving 100 GW of renewable energy capacity and green hydrogen production of 1 million tonnes per year by the end of the decade.

(IDR 10,000 = USD 0.658/EUR 0.613)

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