Indonesia's PLN pursues geothermal supplies

PLN is eyeing a 50 percent stake in PT Pertamina Geothermal Energy to speed up geothermal supplies to PLN.

"They (PLN and Pertamina) have discussed the matter to hold a 50 percent stake each in PGE. If that is the case I will allow them to follow up on the plan," State Enterprises Minister Dahlan Iskan said.

Pertamina currently holds a 100 percent stake in PGE.

The Minister beleievs that the acquisition of PGE shares by PLN from Pertamina would help develop geothermal power plants in the country.

"Right now no power purchase agreement (PPA) has been reached," he said.

"Pertamina wants to sell it (geothermal energy) at higher price while PLN wants to buy it at lower price. Due to the absence of agreement they had an idea to make PGE their joint subsidiary," he said.

He said both PLN and Pertamina had reached an agreement about electrical power supplies after they had settled their long-standing differences.

For the source of this story, click here.