Jakarta (ANTARA) - State-owned electricity company PT PLN (Persero) has said it supports the government's decision to establish Geothermal Indonesia Holding to optimize the development of the country’s geothermal potential.
The company’s executive vice president, corporate communications and CSR, Agung Murdifi, said that PT PLN has ensured its support by consolidating the concerned stakeholders into the joint company.
"The holding establishment aims to maximize the exploration of geothermal energy. Hence, all assets owned by each entity -- including human resources with specific skills -- will continue to be optimized," he said in a statement issued here on Friday.
The potential of geothermal energy in Indonesia is pegged at 25 gigawatts, or equivalent to 40 percent of the world's geothermal potential reserves, he noted. However, the current utilization is only about 2.1 gigawatts, he informed.
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Thus, a major breakthrough is needed to accelerate the utilization of the huge geothermal potential for power stations, Murdifi said.
Furthermore, the government's plan is in accordance with the corporation’s attempts to support energy transition in Indonesia by massively developing new renewable energy plants, including geothermal energy plants, he added.
"We hope the establishment of the holding can fully give its benefit to our nation," he remarked.
Earlier, the government had announced plans to merge three state-owned geothermal companies -- Pertamina Geothermal Energy, PLN Gas & Geothermal, and Geo Dipa Energi – this year.
State-owned Enterprises Minister Erick Thohir said the merged company would be the world’s largest geothermal company.
According to data provided by the Energy and Mineral Resources Ministry, Indonesia has 127 active volcanoes, making it the second largest country in terms of geothermal resources and installed capacity of electricity in the world, after the United States.
