PLN, Pertamina to build geothermal power plant

JAKARTA (JP): The state-owned electric company PLN and the state-owned oil firm Pertamina will set up a joint venture to build and operate a geothermal power station.

A spokesman for the Ministry of Mines and Energy, P. Sopacua, in correcting a story which appeared in The Jakarta Post's April 20 edition, said that the planned joint venture will not be established by state-owned tin mining company PT Tambang Timah and state-owned general mining company PT Aneka Tambang.

An official at the ministry said that the two mining firms will instead set up a joint venture for gold mining and exploration in Kalimantan.

Secretary-general of the Ministry of Mines and Energy Umar Said said that Aneka Tambang and Tambang Timah have already signed a memorandum of understanding on the gold project, whose interest will be equally owned by the two firms.

Umar said that PLN and Pertamina have yet to discuss the details of the power project which they will establish. He noted that the joint venture will be called PT Geothermal Indonesia.

According to official data, Indonesia's potential geothermal energy reserves will be able to support the operation of power plants which will have a total capacity of 19,658 megawatts. Until now, only about 1,000 megawatts of capacity have been utilized.

He pointed out that the two planned joint ventures are to be established under the so-called "cross fertilization" scheme, which calls for cooperation between state-owned enterprises or between state-owned enterprises and private firms.

"In the near future, we'll see more such business cooperation established in order to improve the efficiency of the state-owned companies," he said. (13)