PGE IPO November, PLN Group geothermal assets officially awarded to PGE in August

Reporter: Aziz Husaini | Editor: Aziz Husaini

KONTAN.CO.ID -JAKARTA. The formation of the Geothermal BUMN Holding is entering a new phase. PT Pertamina Geothermal Energy (PGE) will be the head of the geothermal holding. In this phase, the assets of PT PLN G&G and PT Indonesia Power (IP) will become the property of PGE.

KONTAN received an official document regarding the stages of the transfer of the asset. The document was presented by the Deputy Minister of BUMN Pahala Mansury, President Director of Pertamina, and President Director of PT PLN. Even the results of the study have been submitted to Commission VI and have been agreed upon by the representatives of the people.

In the document, it is written that stage 1 is the kick off for the formation of the Geothermal BUMN Holding, which has been carried out from April 2021 to June 2021, is a joint study stage.

Then proceed to stage 2 in June 2021-August 2021, the approval stage for a joint study followed by the transaction of PLN’s downstream assets (PLN G&G and Indonesia Power) to PGE.

Then proceed to stage 3 in August to November 2021 Signing of Conditional Share Purchase Agreement (CSPA) Pertamina/PLN-Government related to Geo Dipa Energi shares owned by the Ministry of Finance.

In Summary 1 it states:

1. That a joint study has been carried out between PLN, Pertamina, Geo Dipa with directions from the Ministry of SOEs and facilitated lead consultant Mandiri Sekuritas with the theme of the study is a geothermal ecosystem study plan.

Phase 1 has been completed, namely the proposed structure for the integration of the geothermal ecosystem. The proposed structure was then agreed at the organizing committee level (directors of 3 SOEs) and received direction from the Ministry of SOEs to be implemented to support PGE’s IPO plan which is targeted for November 2021.

2. The results of the study suggest 4 options:

a. Sale and purchase of the transfer of generating assets with phase 1 transfer of geothermal downstream assets belonging to PLN, PT Indonesia Power, and PT Geo Dipa Energi to Pertamina Geothermal Energy, and leasing back the downstream assets by GDE from PGE.

b. The merger between PGE and GDE, with stage 1 bringing in Geo Dipa’s shares to Pertamina/PLN, stage 2 being the merger of PGE and GDE with GDE as the surviving entity, and stage 3 being the transfer of geothermal assets and liabilities downstream of the PLN Group to PGE

c. The transfer of PGE’s shares to GDE goes through stage 1, namely the transfer of GDE’s shares to Pertamina/PLN, stage 2 of the transfer of PGE’s shares to GDE, and stage 3 with the transfer of downstream geothermal assets and liabilities of the PLN Group to PGE (for PGE WKP).

d. The structure of share values ​​with different nominal values, through stage 1 is the transfer of assets and liabilities downstream of the PLN Group to PG, stage 2 is the transfer of shares from PGE to GDE, stage 3 is the addition of share classification in GDE to accommodate shares to be subscribed by Pertamina and PLN.

3. In accordance with the direction from the Ministry of SOEs to support PGE’s IPO plan, at the implementation stage, option 1 will be implemented in a staging manner towards option 2, namely:
a. Consolidation will be carried out staging through 2 stages, with stage 1 transferring geothermal downstream assets belonging to the PLN Group to PGE before the IPO and stage 2 being the acquisition of Geo Dipa shares by Pertamina/PLN through settlement of receivables to the Indonesian government followed by the merger of PGE and Geo Dipa .

4. In option 1, the first focus will be on asset transfer transactions from PLN to PGE in the form of geothermal downstream assets (PLTP) located in PGE’s WKP consisting of PLTP assets owned by PLN and owned by Indonesia Power.