PT Pertamina Geothermal Energy (PGE) signed a Head of Agreement (HoA) study with PT Medco Power Indonesia in the context of developing geothermal power projects in PGE and Medco Power Projects spread across Indonesia.
The signing was held on Friday (12/31/2021) which was attended by the President Director of PGE, Ahmad Yuniarto and the President Director of Medco Power, Eka Satria and the management of PGE and Medco Power.
At the event, the President Director of PGE, Ahmad Yuniarto also said that this kind of cooperation is very much needed in geothermal development to support the Government of Indonesia in achieving the national renewable energy-based electricity target.
"The signing of this joint study is a follow-up to the joint collaboration Kick of Meeting that has been carried out by both parties with the aim of optimizing geothermal development in five geothermal projects spread throughout Indonesia with a capacity of 495 MW," said Ahmad Yuniarto in his speech.
On the same occasion, the President Director of Medco Power, Eka Satria expressed his commitment to continue to support energy development in the geothermal sector in order to accelerate the achievement of clean and environmentally friendly energy to support government programs.
This step is part of Medco Power's commitment to focus on the transition to new and renewable energy in which the geothermal sector plays an important role. Especially with Indonesia's position as the owner of the largest geothermal reserves in the world with friendly and efficient environmental impact management and has advantages as an energy base load. We are committed to continuing to support energy development in the geothermal sector in all aspects, including health, safety, security, & environment.
This collaboration is a geothermal project development study and will be carried out at PGE and Medco Power Projects over the next twelve months. This study is expected to accelerate geothermal development.
Ahmad Yuniarto added, PGE and MPI will analyze and conduct further studies of development scheme options for each individual Geothermal Project that has been determined, as well as further evaluate the economics of a joint business model and the establishment of timelines and milestones starting from the stages of exploration, exploitation, to operation. on every project that has a positive impact on both parties by prioritizing the fulfillment of compliance aspects (Good Corporate Governance – GCG).
Ahmad Yuniarto explained, in running its business, PGE continues to be committed to geothermal development and ensures the implementation of Environment, Social, and Governance (ESG) to become an integrated part of PGE's geothermal business. The implementation of these ESG aspects is an effort to provide added value and support PGE to government programs related to the use of new, renewable energy that is environmentally friendly, especially geothermal.
In addition, the development of geothermal energy supply carried out by PGE is also a form of PGE's support and commitment in achieving sustainable development, especially the 7th goal (clean and affordable energy), 12 (responsible construction and production), 13 (climate change management), and 15 (land ecosystems) in the SDGs (Sustainable Development Goals).
PT Pertamina Geothermal Energy at a glance
PGE currently manages 14 Geothermal Working Areas, in which 1877 MW of geothermal power has been generated, consisting of 672 MW operated by PGE alone and 1205 MW managed through Joint Operation Contracts. Geothermal installed capacity in PGE's working areas contributes about 88% of the total installed geothermal capacity in Indonesia, with the potential to reduce CO2 emissions of around 9.5 million tons of CO2 per year.
PT Medco Power Indonesia at a glance
Medco Power Indonesia, founded in 2004, is an independent power generation producer under the Medco Energi business group. Engaged in the IPP and O&M sector, Medco Power owns and operates power plants with a total (gross) capacity of more than 3.1 GW in 15 locations in Indonesia.
Medco Power, wholly owned by Medco Energi Internasional Tbk, is a leading Southeast Asian energy and natural resources company listed on the Indonesia Stock Exchange. Medco Energi has three main business segments, Oil & Gas, Electricity and Mining. MedcoEnergi explores and produces oil and gas primarily in Indonesia and is expanding its presence in Southeast Asia.
