"They (PLN and Pertamina) have discussed the matter to hold a 50 percent stake each in PGE. If that is the case I will allow them to follow up on the plan," State Enterprises Minister Dahlan Iskan said on the sidelines of a meeting between 141 members of the boards of directors and commissioners of state-owned companies and the State Audit Board (BPK) here on Tuesday.
Pertamina currently held a 100 percent stake in PGE, he said adding the acquisition of PGE shares by PLN from Pertamina would help develop geothermal power plants in the country.
"Right now no power purchase agreement (PPA) has been reached," he said.
"Pertamina wants to sell it (geothermal energy) at higher price while PLN wants to buy it at lower price. Due to the absence of agreement they had an idea to make PGE their joint subsidiary," he said.
He said both PLN and Pertamina had reached an agreement about electrical power supplies after they had settled their long-standing differences.
"In essence, I agree with the matter. What they have agreed upon is aimed at fulfilling the joint interests of Pertamina and PLN," he said.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2012
