Indonesia and Turkey Strengthen Cooperation in Geothermal Energy Sector

Pertamina Geothermal Energy (PGE) signed a Confidentiality Agreement (CA) with the Turkish energy company, Kipas Holding, on Saturday (3/2/2024).

IDXChannel - Pertamina Geothermal Energy (PGE) signed a Confidentiality Agreement (CA) with the Turkish energy company, Kipas Holding, on Saturday (3/2/2024). 

Both energy companies agreed to initiate cooperation in the geothermal energy sector. The agreement was signed by Julfi Hadi, the CEO of PGE, and Mehmet Sisman from GM Kipas Holding, witnessed by the Indonesian Ambassador to Turkey, Achmad Rizal Purnama, in Istanbul.

"Thank God, alhamdulillah, this evening PGE and Kipas Holding have agreed to start geothermal cooperation. For almost four months, we have been seriously exploring economic cooperation opportunities in the energy sector, and today that hard work has paid off," stated Ambassador Rizal in a media release on Monday (5/2/2024).

It was further explained that the Indonesian Embassy in Ankara had facilitated PGE's efforts to explore the potential for geothermal exploration and operations cooperation with several energy companies in Turkey. Various meetings have been held to find suitable partners. 

In previous initial meetings, PGE and Kipas Holding expressed interest in collaborating on exploration in both Turkey and Indonesia, even opening the possibility for joint investment in a third country. In addition to Kipas Holding, Ambassador Rizal also facilitated PGE to meet with several other energy companies. 

"In PGE's visit to Turkey this time, we also met with several top energy companies, engaging in lengthy discussions in each meeting. Hopefully, in the near future, we can find one or two more potential partners for investment in Turkey," explained Julfi Hadi, CEO of PGE.

After establishing cooperation with Kenya, PGE continues to build cooperation with Turkey. The main consideration is the relatively significant potential for geothermal energy in Turkey. 

As the fourth-ranked country in the world with the largest geothermal potential, Turkey is appealing to investors due to its feed-in-tariff policy. This reflects the Turkish government's goodwill to assure investors in the geothermal energy sector of long-term regulatory certainty and competitive price incentives.

Ambassador Rizal, who presented his credentials in mid-January, also emphasized energy cooperation as one of the 4+1 priority missions as the Indonesian Ambassador to President Recep Tayyip Erdogan of Turkey, which includes Defense, Energy, Construction and Health, and Trade. 

This has been well received by President Erdogan, who assigned his top officials to oversee Indonesia-Turkey cooperation projects. (WHY)