PT Pertamina Geothermal Energy Tbk (PGE) (IDX: PGEO)'s steps to develop its business on the global stage continue. After collaborating with Kenya for some time, PGE is now looking at the potential for geothermal development in Turkey.
PGE's concrete steps to becoming an international geothermal company were strengthened by Pertamina Geothermal Energy Tbk's working visit to several geothermal development companies in Turkey at the end of October.
With more than 35 years of experience developing the geothermal business in Indonesia and a business model that continues to be optimised, PGE is seriously exploring the potential for business development in several countries that have the potential to become partners in developing the geothermal business. This collaboration is one of PGE's strategies to become a geothermal company that is not only a leader in Indonesia but also on the international stage.
Türkiye currently has a fairly positive geothermal business investment climate. This is indicated by several factors, such as the privatisation of the geothermal sector, which began in 2009, and investor-friendly incentives. In particular, the government provides more profitable incentives to energy companies that develop geothermal with a feed-in tariff scheme. This incentive provides certainty that the product produced by the developer will be absorbed economically.
This positive climate has had an impact on increasing Turkey's geothermal production, which has increased significantly from 80 MW to 1600 MW in the last 10 years and has made it the country with the fastest growth in geothermal energy in the world.
During this visit, the President and Director of PT Pertamina Geothermal Energy Tbk, Julfi Hadi, together with the Director of Exploration and Development of PT Pertamina Geothermal Energy Tbk, Rachmat Hidajat, and the Indonesian Ambassador to Turkey, Achmad Rizal Purnama, had the opportunity to meet with several Turkish geothermal developers, including Energy Holding and SDS Energy.
President and Director of PT Pertamina Geothermal Energy Tbk, Julfi Hadi, said, "From this visit, PGE will see potential partners to work together in geothermal development so that it is hoped that positive synergy can be created for both parties in the future."
Julfi also said that the choice to visit Turkey was driven by the country's progress in utilizing geothermal energy as a source of electricity for the community.
"Currently, Turkey is the country with the fourth largest installed geothermal capacity in the world. This is one of the reasons why we visited here," he said.
Referring to data from the Turkish Ministry of Energy and Natural Resources quoted from the Anatolian Agency, the installed capacity of geothermal power plants in the country has reached 1,691 megawatts (MW).
However, Turkey's current per capita energy consumption level only reaches around 3.8 MW per year, which is still far below the Organisation for Economic Co-operation and Development's (OECD) standard of 8 MW per year. This indicates that the potential for utilising geothermal energy in Turkey has not yet been fully explored.
The Indonesian Ambassador to Turkey, Achmad Rizal Purnama, said, "With all the potential it has, it is still very possible to exploit geothermal energy in Turkey further." We are optimistic that this visit can be the door to cooperation in geothermal development for Indonesia and Turkey, which will provide benefits for many parties."
From this visit, PGE obtained various information regarding the use of technology and operational strategies implemented by geothermal development companies in Turkey, which can be considered in supporting the company's plans to maximise geothermal potential in the country in order to become a geothermal company with 1 gigawatt (GW) installed in two years. coming.
This overseas business visit is the second time PGE has undertaken it under Julfi's leadership. Previously, Julfi participated in a state visit led by Indonesian President Joko Widodo and President Director of PT Pertamina (Persero) Nicke Widyawati to Kenya. This visit was the first step for PGE to open international geothermal business cooperation by signing an agreement with Africa Geothermal International Limited (AGIL) and Geothermal Development Company (GDC).
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About PT Pertamina Geothermal Energy Tbk
PT Pertamina Geothermal Energy Tbk (PGE) (IDX: PGEO) is part of Subholding Power & New Renewable Energy (PNRE) PT Pertamina (Persero), which operates in the field of geothermal exploration, exploitation, and production. Currently, PGE manages 13 geothermal working areas (WKP) and 1 assigned working area with an installed capacity of 1,877 MW, of which 672 MW is operated and managed directly by PGE and 1,205 MW is managed under the Joint Operation Contract scheme. The installed geothermal capacity in PGE's working area contributes around 80% of the total installed geothermal capacity in Indonesia, with the potential to reduce CO2 emissions by around 9.7 million tonnes of CO2 per year.
As a world-class green energy company, PGE wants to create value by maximising end-to-end management of geothermal potential and its derivative products, as well as participating in the national and global decarbonation agenda to support Indonesia's net zero emissions by 2060. PGE has excellent ESG credentials, with 13 Gold PROPER awards from 2011 to 2022 in the highest environmental compliance award from the Ministry of Environment and Forestry ESG Rating & Engagement.
