- 1 year ago
Sebagai energi hijau, panas bumi berpotensi besar mewujudkan masa depan sektor energi yang lebih berkelanjutan di Indonesia. Dalam pengembangannya, membutuhkan dukungan penuh dan kolaborasi dari berbagai pihak. PT Pertamina Geothermal Energy Tbk (PGEO) menawarkan paradigma baru untuk mengakselerasi pengembangan energi panas bumi yang bertumpu pada strategi pembaruan model bisnis, penurunan biaya, dan diversifikasi bisnis untuk membuat investasi di sektor ini semakin menarik.
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TVTranscript
00:00Yes, hello viewers how are you today directly from the AIDA channel Jakarta studio.
00:18I am prasetyowi Bowo again in the market Review, a program that covers the issues of Indonesian economic movements.
00:24You can also watch our live streaming at www.idxternal.com
00:28Without further ado, let's start the complete market review
00:41The 10th Indonesia International Geothermal Convention and Exhibition
00:46or IIGCE 2024
00:49has been held at the Assembly Hall, Jakarta Convention Center
00:52from 18th to 20th September 2024
00:55where this event becomes Indonesia's momentum
00:58to strengthen the commitment of the speed of electricity generation
01:01and the energy of the earth's heat
01:02Yes, as we know, the earth's heat has a great potential
01:05to create a more sustainable energy sector in the future in Indonesia
01:10Therefore, PT Pertamina Geothermal Energy TBK
01:14offers a new paradigm to accelerate the development of earth's heat energy
01:19which is based on business model renewal strategy
01:22reduction of cost and diversification of business
01:25So, what is the financial and operational strength
01:28in the development of earth's heat in Indonesia?
01:30Let's watch the discussion of Prisah Somodhatu
01:34together with the Director of Finance, PT Pertamina
01:36Geothermal Energy TBK in Jakarta, Convention Center
01:40Enjoy the show
01:52Welcome back with me, Prisah Somodhatu
01:55in Market Review
01:56This time, we are live from Jakarta Convention Center
01:59in Indonesia International Geothermal Convention and Exhibition
02:04or IIGCE 2024
02:07Because today I will have a special discussion
02:10with PT Pertamina Geothermal Energy TBK
02:13or noted in Indonesia's EFFECT
02:14with the PGEO code
02:16Green Energy Company
02:18with the PGEO code
02:20Green Energy Company World Class
02:23There is already the Director of Finance, Mr. Jurisky Ryo
02:27Mr. Rex, how are you?
02:28Good, how are you, Prisah?
02:30Thank you for joining in the middle of busy and busy life
02:33this event
02:34Good
02:35I want to know, what is this PGEO
02:39or Pertamina Geothermal Energy
02:41is a world-class green energy company?
02:44That's right, because in addition to the fact that
02:46we have quite a large installation capacity
02:49but our resources are also one of the largest in the world
02:52actually second biggest in the United States
02:54and right now we are planning to
02:58to explore in countries other than Indonesia
03:03Okay, so I'm proud to have the opportunity to travel further
03:09what is the opportunity from geothermal in the future
03:14from PGEO
03:15Thank you
03:16Let's go to the financial report first
03:18If you look at the financial report yesterday
03:20the clean energy growth is 3.8%
03:2496.26 million US dollars
03:27compared to the same period last year
03:31What is the main contribution?
03:33Yes, thank you
03:34First, maybe I want to say thank you and proud and happy
03:38related to our performance
03:39just like what Mrs. Prisah said
03:40we experienced a 3.8% reduction
03:42compared to the previous period
03:44This is the first semester, right?
03:46Yes, this is the first semester
03:48And if I can tell you a little bit
03:51Actually, the geothermal business
03:53or geothermal
03:55is different from the general business
03:57If we only have one customer
03:59single off taker, which is PTPLN
04:02Second, this is an asset-intensive company
04:05so the maintenance works are very clear
04:08so the production level or production output per year is very balanced
04:12So in 2024
04:14with various maintenance work needs
04:16we have anticipated
04:18we have anticipated that our production level will actually decrease
04:21But I'm here to represent the BOD
04:24we invite all of our colleagues at the PGE
04:27to figure out how we optimize production
04:29at least at the same level as last year
04:31like that
04:32So if we look at our production
04:36for steam and electricity
04:39the target was only 2328 gigawatt hours
04:43but the realization is that we can reach 2378 gigawatt hours
04:47only a little below the previous period
04:512397 gigawatt hours
04:53The income is also like that
04:56Our target was only 199 million
04:59but the realization is that we can reach 204 million USD
05:02only a little below last year, which is 207
05:05EBITDA, our target is only 155
05:08but our realization is 168
05:11Net profit, as I said earlier
05:13the target was only 59 million
05:16but we can reach 96 million
05:18even higher than the previous period
05:20So if we look at the clean energy increase in the first half of 2024
05:26it is indeed a combination of strategy
05:28from the acceleration of income growth
05:30and also operational efficiency and finance
05:34Okay, we go to the acceleration of income growth first
05:37then efficiency
05:39Okay, what is the indicator that pushes the acceleration of income growth?
05:46Okay, so on the operational front
05:48I have three levels, operations, finance
05:51On the operational front
05:53our production target and our commitment to meet that target
05:57results are quite solid
05:59seen from the production output earlier
06:01Some of the key activities are
06:03including the acceleration of maintenance work
06:06so that we have more production day
06:08compared to the turnaround time
06:10Second, we have the term of adding more steam
06:15we keep increasing the steam
06:17to fulfill our existing contract with PLN
06:19Some of the work is like
06:21bottlenecking activities
06:23then load factor improvement
06:27and so on, that's from the operational front
06:29If from the financial side
06:31there are also several activities that we pursue
06:33such as forex management
06:36and also optimizing our funds
06:38because we now have excess liquidity
06:40that is waiting to be absorbed by CAPEX
06:42so from these two things
06:44forex gain
06:46and also from interest income
06:48we can already produce additional income of 26 billion rupiahs
06:52So you are optimistic
06:54that the energy in the future will increase even more?
06:56Of course
06:58Later we will discuss further
07:00and also how to invest as interesting as that
07:02in the future
07:04We know that PGE is a pioneer and also a leader
07:10Correct
07:12Later we will discuss further
07:14we have to be a leader first
07:24Thank you, Mr. Mir, for being with us
07:26and we are still live from Indonesia
07:28International Geothermal Convention and Exhibition 2024
07:32together with PT Pertamina Geothermal Energi TBK
07:36still together with Mr. Rex
07:38Okay, Mr. Government
07:40at the moment and the next government
07:44optimistic and it looks like it will increase
07:46the target of renewable energy
07:50green energy
07:52certainly included in it is the earth's heat
07:54What is the expectation
07:56and how far is the readiness of PGE itself
08:00so that the project or the quota can be achieved?
08:04Actually, this question is related to the project development
08:10that we are doing
08:12Actually, there are several project lineups
08:14that we are pursuing or doing
08:16but if I can take a step back
08:20I am quite routine
08:26having a regular dialogue with investors
08:28both global domestic investors
08:30or investors who have become stockholders
08:32or those who have not become stockholders
08:34the point is from talking to the investor
08:38there is one thing they always ask us
08:40How do you monetize the business?
08:42there are two things
08:44which is increased capacity
08:46the second is power purchase new equipment
08:48for the increased capacity
08:50mostly we are focused on two projects
08:54one is Lemut Balai Unit 2
08:58which will produce additional installed capacity
09:02for PGE as large as 55 MW
09:04which will have ready mechanical completion by the end of the year
09:08the progress is now 84%
09:10and we are confident by the second quarter of next year
09:14it can be COD
09:16then the second is Bululais Unit 1 and 2
09:19this will add 110 MW capacity for PGE
09:23we have a different agreement with PLN
09:28usually we have a power purchase agreement
09:30for Bululais we have a steam sales contract
09:33so we sell the steam
09:34PLN will build the power plant
09:36now our steam field is ready
09:38already above the ground
09:40now we are working closely with PLN
09:42to accelerate the development of power plant
09:47which will be operated by PLN
09:49the target for this
09:50maybe within the next 2 or 3 years it can be COD
09:52that is from the increase of capacity
09:54then the second is the addition of PPA
09:56PPA is the fastest
10:00we have a project called Co-Generation Power Plant Development
10:03using binary technology
10:05what is it actually?
10:07to simply put
10:09it is actually an optimization program
10:11from the existing power plant
10:14so in the existing power plant
10:16there is a fluid that after being extracted
10:18it is not used
10:19normally we re-inject it to the reservoir
10:21then we transfer it to the Co-Generation Power Plant
10:24through binary technology and heat exchangers
10:26it can produce additional output
10:2920-22% capacity
10:31and for the Co-Generation Power Plant itself
10:33we have identified
10:35there is a total of 230 megawatts
10:37so imagine
10:39from the conventional power plant we have 165
10:41and from the Co-Generation Power Plant
10:43we have 230 megawatts
10:44this is what we will try to contribute
10:48to the transitional energy that is happening in Indonesia
10:51okay, in terms of investment
10:53does it require a lot of money?
10:57how is the preparation from the PGE?
10:59yes
11:00actually for investment
11:02as we know
11:04last year we just had an IPO
11:06right?
11:07now we can say
11:09having a very strong firepower
11:12the funds are still there
11:13our cash now is USD 700 million
11:1660% of the remaining IPO funds
11:18but 40% is the operating profit
11:22the question is
11:24are we ready to develop all these projects?
11:27the answer is yes
11:28but maybe
11:30we look at it on a case-by-case basis
11:32if we do equity fundraising
11:37it doesn't seem like it
11:39but if we try to explore
11:41external financing from debt instruments
11:44in our opinion
11:45this is something we can still explore
11:47because right now we are trying to
11:49re-strategize our capital structure
11:52we have projects that are still in the exploration phase
11:56in the exploration phase
11:57the project is unbankable
11:59and we have a strong cash
12:01to fund the projects in the exploration phase
12:03but when it comes to development
12:05what I strategize is
12:07why not
12:08if we have gone through risky times
12:11we go into development
12:12we ask for support from external financing
12:15to get more funds
12:17so that it can revive or increase
12:20the return profile of the projects we are running
12:23and in our opinion
12:24this approach will preserve value
12:26within the long run for PGI
12:28okay
12:29so what is the next step
12:31so that the investment in the energy sector
12:36can be more interesting?
12:38of course, how far is it?
12:40we will find out later
12:42let's go back
12:43okay
12:44let's go back to the market review
12:56we will still talk with Mr. Yurisky Ryo
12:59who is the director of PT Pertamina Geothermal Energy
13:02TBK
13:03a world-class green energy company
13:05okay
13:06to maximize
13:08because of course this requires significant investment
13:12to achieve the net zero emission in 2060
13:15and how can PGE become a leader like that
13:20we were stuck in projects that are unbankable
13:26and also already in development
13:28if from PGE, which one is bigger so far?
13:30now PGE has a capacity of 672 megawatts
13:36if last year in 2023
13:38we are still focused on operational efficiency and production
13:41we have already made a plan
13:43already made a roadmap
13:44that in the next 2-3 years
13:46our installed capacity must reach 1 gigawatt
13:48so we will become a 1 gigawatt company
13:50within the next 2-3 years
13:52it means from PLM there is also a potential to increase the contract to that size
13:55yes
13:56how is it?
13:57this is what I am most often asked
13:59is it achievable in the next 2-3 years?
14:01from what I mentioned earlier
14:03there is the Lemut Balai project
14:05Kululais
14:07and then Kogen up to 230 megawatts
14:09we can say it is a quick win project
14:11or a low hanging fruit project
14:13where those projects
14:15if Kululais and Lemut Balai
14:17it has been covered by financing
14:19for Kogen up to 230 megawatts
14:22there is no risk of exploration
14:26we have the team up there
14:27we just need to make a power plan
14:28we just need to connect
14:32and also Kogen power plan
14:34is a bit different from conventional power plan
14:37conventional power plan
14:38we can take about 4-6 years to build
14:41but Kogen can only take up to 2 years
14:44because as I said earlier
14:45the steam has come out
14:46in the existing power plan
14:48we just need to redirect it to Kogen power plan
14:50and we aim in the next 2-3 years
14:52to increase our capacity
14:54to become like this
14:55there are a lot of organic
14:56there are a lot of organic
14:58what is the challenge?
15:00it means that the PGS is really ready
15:02what is still
15:04a business
15:08there must be a challenge
15:10yes
15:11actually if we see
15:12the biggest risk
15:14from the hot earth sector
15:16is subsurface risk
15:18below the surface
15:20if we do not plan
15:24according to the output that is explored
15:26of course it will affect
15:29financial planning
15:31projection, income, profit, etc.
15:33of course from the PGS
15:35we always continue
15:36in addition to doing comprehensive studies
15:39but here we also
15:41start to open up opportunities to partner
15:43with a partner strategy
15:45what is the function of this partnership?
15:46not only are we trying to share the risk
15:49or capital allocation
15:51but we also hope
15:52to get transfer knowledge
15:54transfer technology
15:55transfer innovation
15:56so that we can mitigate
15:58subsurface risk
15:59and also increase the return profile
16:01of the projects that we are running
16:03and this is actually already running
16:06so from the total of 670 megawatts
16:08that we have run
16:09we run it ourselves
16:10in our areas
16:11in the future
16:12for the new hot earth permit
16:14there are two areas
16:15we just want to enter
16:16into the exploration stage
16:17we have also partnered
16:19with the outside
16:20the city of Mobablu and Waratai
16:22we work together with Chevron
16:23and also from Mobablu
16:24so in the future
16:25the business capital
16:26we try to do
16:27strategic collaboration with partners
16:30it can be said
16:31that it is a new paradigm
16:32that is accelerated
16:33by PGF
16:35from business model innovation
16:37that's the second
16:38so now we are shifting
16:40our paradigm
16:41like that
16:42we have three pillars
16:43that we are chasing
16:44the first one is
16:46updating our business model
16:48what is it?
16:49it's called stack wise development
16:50if in the past
16:51we were to develop
16:53geothermal business
16:54it must be big
16:55110 megawatts
16:56can you imagine
16:57in the initial capex
16:58and what is the risk?
17:00if now
17:01we can start small first
17:02we COD
17:03we get cash flow
17:04and then we expand
17:05this is what we do
17:06that's the first
17:07the second pillar is
17:08lowering capex
17:09so that we can get
17:10maximum return profile
17:11lowering capex
17:12is of course
17:13with technology levers
17:14like I said earlier
17:15in cogeneration
17:16using binary technology
17:18it's capex per megawatt
17:21is only 3 to 3.5 million per megawatt
17:23but if we use
17:24the conventional power plant
17:25it can be 5 million
17:26that's the second lever
17:28which is lowering capex
17:30and the third is
17:31if I look at it
17:32it's more to medium to long term
17:34which is to develop
17:35the byproducts of geothermal
17:36because actually
17:37using geothermal
17:38to produce electricity
17:39is just one thing
17:40to utilize geothermal
17:41but there are still
17:42a lot of products coming down
17:43but the regulation
17:44is it possible?
17:45regulation and market
17:46is still not in place
17:47maybe production cost
17:48and logistic cost
17:49is still expensive
17:50but what we do here
17:51is next year
17:522025
17:53we will launch
17:54pilot project
17:55to develop
17:56green hydrogen
17:57for example?
17:58green hydrogen
17:59which we will develop
18:00in Lahendong and Udobelu
18:01but we are not
18:02we haven't prepared
18:03for mass market
18:04so we are for internal use
18:05small scale
18:06just to show
18:07that we have the capacity
18:08we have the capability
18:09once the market
18:10and regulation in place
18:11the technology
18:12will be more developed
18:13we are ready
18:14so geothermal
18:15is not only for electricity
18:16but
18:17correct
18:18there will be
18:19products coming down
18:20it's said
18:21there are already
18:22developed through CSR
18:23yes
18:24if it's more
18:25direct use
18:26direct use
18:27like we
18:28trying to
18:29what is it
18:30empower
18:31citizens
18:32around
18:33site
18:34they have
18:35business
18:36sugar cane
18:37coffee
18:38and so on
18:39they can be heated
18:40by geothermal heat
18:41like that
18:42but in terms of
18:43revenue
18:44it's not yet
18:45it's still
18:46in
18:47CSR
18:48but in the future
18:49is there a chance
18:50to develop
18:51the direct use
18:52if the regulation
18:53make it possible
18:54of course
18:55of course
18:56because
18:57we want to
18:58optimize
18:59what can be done
19:00what can be generated
19:01from geothermal heat
19:02like that
19:03that's
19:04our strategy
19:05to diversify away
19:06from our single
19:07off taker
19:08PLN
19:09like that
19:10of course
19:11once we have
19:12the opportunity
19:13once the market
19:14is ready
19:15once the regulation
19:16is in place
19:17this is something
19:18that definitely
19:19we will explore
19:20okay
19:21maybe
19:22what is the economy
19:23of geothermal heat
19:24like?
19:25yes
19:26so actually
19:27the economy
19:28in geothermal heat
19:29is
19:30now
19:31if we look
19:32the rate
19:33is already
19:34set
19:35especially
19:36based on
19:372022
19:38the rate
19:39of ceiling
19:40is imposed
19:41right
19:42so
19:43whether we like it or not
19:44this is our
19:45playing field
19:46actually
19:47maybe
19:48we can say
19:49our return
19:50profile is
19:51okay
19:52again
19:53this is our
19:54playing field
19:55of course
19:56how
19:57developers
19:58or other
19:59geothermal players
20:00to think
20:01more creatively
20:02ceiling rate
20:03the rate
20:04can't go up
20:05but the return
20:06profile goes up
20:07why?
20:08because if the rate
20:09goes up
20:10that means
20:11the rate
20:12of geothermal
20:13is not
20:14competitive
20:15anymore
20:16right
20:17we can
20:18lobby
20:19the rate
20:20with
20:21updating
20:22business model
20:23then we
20:24leverage
20:25technology
20:26to lower
20:27the capex
20:28the third
20:29potentially
20:30to develop
20:31the byproducts
20:32of geothermal
20:33so we
20:34don't see
20:35geothermal
20:36as a single
20:37entry
20:38business model
20:39but can
20:40multiple
20:41business model
20:42if we
20:43work together
20:44we can
20:45increase
20:46the return
20:47profile
20:48and all
20:49any message
20:50from the
20:51director of
20:52PGE
20:53to investors
20:54or the
20:55public?
20:56I think
20:57this is
20:58an exciting
20:59time
21:00for the
21:01geothermal
21:02industry
21:03if we
21:04look
21:05over the
21:06last 10
21:07years
21:08from 2014
21:09to 2024
21:10it's still
21:11considered
21:12as a
21:13sleepy sector
21:14the growth
21:15is only
21:166%
21:17but the
21:18growth
21:19is
21:20growing
21:213 times
21:22faster
21:23in the
21:24last
21:256 years
21:26from
21:272004
21:28to
21:292003
21:30and
21:31this is
21:32something
21:33that we
21:34try to
21:35engage
21:36with
21:37multiple
21:38stakeholders
21:39across
21:40ministries
21:41in one
21:42way
21:43if we
21:44want to
21:45accelerate
21:46this
21:47Okay, thank you.
21:49That was a special dialogue in Market Review,
21:51this time with the Director of PT Pertamina Geothermal Energy TBK.
21:55I hope it can be a reference for you.
21:57And next, Mr. Mirsa, Market Review,
21:59we will return to the studio with Rekan Prasetyo Wibowo.
22:02Please, Mr. Prasetyo.
22:03Okay, Mr. Mirsa, we have just delivered the discussion
22:05of Prisasom Bodaltu with the Director of PT Pertamina Geothermal Energy TBK
22:10in Jakarta Convention Center.
22:12Don't go away from your place,
22:13of course, we will be back with an interesting topic for you in a moment.
22:17www.ptp.org
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