JAKARTA (TheInsiderStories) - PT Pertamina Power Indonesia, the unit of state-run energy holding, PT Pertamina, is preparing an investment of around US$15 billion until 2026 to develop new and renewable energy (NRE). The company has an ambition to achieve the new portfolios equivalent to 40 gigawatt (GW) by that year.
According to the director, Ernie Ginting, the target was contributed from clean energy-based power plants, battery, and solar manufacturing. The projects consist of 10 GW of clean energy power plants and 30 GW of battery cell manufacture. With the addition of the portfolios, its expected to increase the company’ revenues by $8 billion.
To support the planned, on Monday (08/12), Pertamina has signed an agreement with PT Adaro Indonesia Tbk (IDX: ADRO), PT Indika Energy Tbk (IDX: INDY), and other coal producers to develop a coal gasification program that can be processed into dimethyl ether (DME). CEO Pertamina, Nicke Widyawati, explained that the program is a company effort to develop alternative energy and to reduce the LPG imports.
In October 2020, the oil and gas producer together with other state-owned firms, PT Aneka Tambang Tbk (IDX: ANTM) and PT Perusahan Listrik Negara (PLN), has formed a new venture company called Indonesia Battery Holding. The venture firm will operates an electric vehicle battery plant.
“In the upstream there is ANTAM, the intermediate one is Pertamina, and downstream there is PLN” said CEO of PT Indonesia Asahan Aluminium (MIND ID), Orias Petrus Moedak, on Oct. 13.
The former deputy director of PT Freeport Indonesia, stated, currently there are two potential partners from China and South Korea who are being approached to become and investors in the new EV battery factory. He said, the investment values of this project was estimated around $12 billion.
To support the planned, said the CEO, ANTAM now worked on related EV battery like high-pressure acid leaching and rotary kiln electric furnace smelter projects valued $2 billion to $3 billion, respectively. But, he did not give the details on the two projects.
Previously, minister of state own enterprises, Erick Thohir, revealed, after MIND ID’ purchase PT Vale Indonesia Tbk (IDX: INCO) shares with worth of Rp5.5 trillion ($390.07 million), the new unit its expecting would support the downstream projects of the holding mining company. With the share ownership, will allow MIND ID to secure the supply of raw materials, especially nickel.
He emphasized that since the government banned nickel exports as of Jan. 1, 2020, MIND ID has been faced with a challenges to innovate and restructure the business models. Based on the reasoned, now the ministry prepare this company to enter the EV battery industry, which currently 27.9 percent of the market share controlled by China.
Indonesia, he asserted, only became a producer and exporter of raw goods with a share of 27 percent in the global market. The plan will be executed with the construction of a lithium-ion factory which is planned to be near two nickel mines owned by ANTAM in Tanjung Buli, East Halmahera and in North Konawe, Southeast Sulawesi.
MIND ID is currently managed ANTAM, INCO, PT Bukit Asam Tbk (IDX:PTBA), PT Timah Tbk (IDX: TINS), and Freeport Indonesia.
US$1: Rp14,100
Written by Editorial Staff Email: theinsiderstories@gmail.com
