PGE Engages Elnusa, PertaMC, and PGAS Solution to Achieve Clean Energy Transition
Jakarta, June 28, 2024 – PT Pertamina Geothermal Energy Tbk (PGE) (IDX: PGEO) actively collaborates with various parties to develop geothermal energy potential as the backbone of the national energy transition. Together with PT Elnusa Tbk (Elnusa), PT PGAS Solution (PGASOL), and PT Pertamina Maintenance and Construction (PertaMC), PGE has entered into a Joint Study Agreement (JSA) to develop technological solutions, including domestic production opportunities for key geothermal power plants components.
The signing of the Geothermal Center of Excellence JSA, which took place on Thursday, June 27, 2024, at Grha Pertamina, Jakarta, was attended by the Director of Strategy, Portfolio, and Business Development of PT Pertamina (Persero), A. Salyadi Saputra, President Director of Pertamina New and Renewable Energy (PNRE), John Anis, President Director of PGE, Julfi Hadi, Director of Finance of Elnusa, Stanley Iriawan representing the President Director of Elnusa, President Director of PGASOL, Sabaruddin, and President Director of PertaMC, Andry Widiasti. The direct presence of the collaborating company leaders highlights the importance of the JSA, which will facilitate discussions, studies, information exchange, and joint studies for geothermal energy development.
Director of Strategy, Portfolio, and Business Development of PT Pertamina (Persero), A. Salyadi Saputra, appreciates this strategic collaboration to realize the geothermal center of excellence as a provider of geothermal technology solutions in Indonesia. “This is a strategic initiative for Pertamina, which has been managing geothermal energy in Indonesia for more than 40 years. This collaboration is expected to support PGE in achieving its vision of becoming a world-class green energy company with the largest geothermal capacity globally,” A. Salyadi Saputra said.
President Director of Pertamina New and Renewable Energy (PNRE) John Anis added that new and renewable energy, especially geothermal energy managed by PGE, is the future for both Pertamina and Indonesia. “Geothermal energy development faces many challenges, and one solution is efficiency to remain competitive. Establishing a center of excellence in Indonesia will help PGE become more efficient in developing geothermal energy.”
President Director of PGE, Julfi Hadi, explained that the signing of this JSA is a strategic step for PGE and its partners to optimize geothermal energy development by leveraging domestic industry capabilities and technological expertise. “This initiative is a tremendous effort that deserves collective appreciation because, in the future, there will be other innovations and collaborations to create a massive and integrated renewable energy technology portfolio. We are optimistic about the significant potential of geothermal energy as a driving force in accelerating the transition to clean energy,” Julfi Hadi said.
This JSA includes, but is not limited to, joint studies regarding the potential for developing a business portfolio covering: 1) heat exchanger manufacturer, 2) geothermal operation and maintenance service, 3) cooling tower manufacturer, and 4) EPCC and pipeline construction.
President Director of Elnusa, Bachtiar Soeria Atmadja, stated that the current collaboration between Elnusa and PGE is not the first, and Elnusa warmly welcomes and is ready to support and contribute to the development of the geothermal industry. “This synergy and collaboration reflect Elnusa’s commitment to continuously innovate and make meaningful contributions to the renewable energy sector, particularly the Geothermal Center of Excellence," Bachtiar said.
President Director of PGASOL, Sabaruddin, also appreciates this beneficial synergy. “Energy conversion is a new task for all of us. Therefore, I highly appreciate this beneficial synergy. We will remain optimistic and support the nation regarding innovations in the national energy transition through this joint study.”
President Director of PT PertaMC, Andry Widiasti, expressed readiness to support and collaborate in developing PGE’s geothermal energy through Pertamina Group synergy. “PertaMC, a subsidiary of PT Pertamina Patra Niaga Subholding Commercial & Trading (C&T), focuses on maintenance, construction, and plant services, including technical inspections, manpower supply, and consulting, serving all business lines within Pertamina. Moreover, PertaMC’s support extends beyond fuel and gas production to renewable energy production, contributing to net zero emissions reduction. Therefore, PertaMC consistently solidifies its commitment as a trusted and reliable partner for stakeholders, continuously creating sustainable value, enhancing and developing the company's competence and business to create Pertamina Beyond Synergy,” Andry said.
This collaboration is also an initiative by PGE as Pertamina’s front line in the national energy transition. The JSA will encourage the utilization of domestic energy and engineering manufacturing capabilities to create a new and leading ecosystem in the geothermal sector, making geothermal development more affordable. Until now, most of the technology used for geothermal development is imported.
Moreover, the JSA is a breakthrough to diversify business models and create value from geothermal technology through new revenue streams, exploring business potential beyond electricity. With the Pertamina Group synergy, PGE believes that expanding to create future geothermal revenue streams can enhance competitive advantages, drive innovation, and increase commercial attractiveness.
Julfi Hadi emphasized that as a world-class green energy company, PGE continues to innovate and collaborate with partners to advance the geothermal sector. “Geothermal is an almost zero-emission energy source with abundant potential, especially in PGE’s Geothermal Working Areas (WKP) with potential development up to 3 GW. Geothermal potential must continue developing to play a significant role in the energy transition,” Julfi Hadi said.
Vice President of Corporate Communication of PT Pertamina (Persero), Fadjar Djoko Santoso, stated that geothermal potential could become one of the new renewable energy sources to support national energy security. Collaboration with stakeholders will expand the utilization of geothermal energy.
"We are promoting emission reduction through geothermal energy. We enhance national energy security, one of which is through geothermal," Fadjar concluded.
Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.**