Pertamina, PLN to jointly develop power plants

JAKARTA (JP): State oil and gas company Pertamina and a subsidiary of state electricity company PLN, PT PLN Pembangkit Java Bali I (PJB I), have signed an agreement to jointly develop geothermal power plants throughout Indonesia, Pertamina announced.

Pertamina spokesman Toto Soeparto said under the agreement, both companies would cooperate in the design, construction, testing, operation and maintenance of the geothermal power plants.

"The agreement will increase the synergy between the two companies in the form of a joint venture," Toto said in a media statement late on Tuesday.

Signing the agreement for Pertamina was director for exploration and production Gatot K Wiroyudo, while representing PJB I was director for development and trade Herman Darnel.

The two companies will also work together in the fields of exploration and exploitation of geothermal resources, and jointly study the upstream and downstream feasibility of the energy resource.

He said Pertamina had good experience in the development of geothermal fields, while PJB I was experienced in building and operating geothermal power plants.

Toto said the present cooperation between the two companies involved the operation of geothermal power plant Kamojang units I, II and III, which have a combined capacity of 140 megawatts (MW).

"The current cooperation between the two companies in operating the Kamojang geothermal power plant will show the synergy between them and mutually benefit both companies," he said.

Future projects could include the development of the Kamojang unit IV with a 60MW capacity; the Sibayak unit I with a 20MW capacity; the Lahendong unit II with a 40 MW capacity; and the Ulubelu unit I, which has a 60MW capacity.

Indonesia's potential geothermal resources could provide up to 19,000 MW of the country's power needs, however, at present only 250 MW is being used.

Toto said Pertamina was committed to further developing its geothermal non-core business unit, so that the unit could grow into a solid strategic business unit of the company.

The government granted Pertamina monopoly rights over the exploitation of geothermal resources in the early 1980s through Presidential Decree No. 22/1981.

The government amended the decree 10 years later with Presidential Decree No. 45/1991, which allowed Pertamina and its contractors to explore and exploit geothermal resources, generate electricity using geothermal steam and to sell the power to PLN.

The latest decree, Presidential Decree No. 76/2000, lifts the monopoly and transfers the management and licensing rights of geothermal resources to the regions. (bkm)