Indonesian geothermal energy giant PT Barito Renewables is preparing a $228 million IPO on the local stock exchange

Salak geothermal power plant, Indonesia (Source: BCPG)

PT Barito Renewable Energy’s planned IPO on the Jakarta Stock Exchange is expected to raise $228 million, joining fellow geothermal energy firm Pertamina Geothermal Energy.

Indonesia’s PT Barito Renewables Energy Tbk is preparing to go public on the Indonesian Stock Exchange, joining fellow geothermal operator PT Pertamina Geothermal Energy Tbk, which entered the market earlier this year.

Barito Renewables began operations through one of its subsidiaries, namely Star Energy Geothermal Group, a leading geothermal power producer which it acquired in 2017/2018. Currently, the company as a group operates three geothermal power plants in West Java with a total installed capacity of 886 MW, accounting for around 38 percent of the market share in Indonesia. As of June 30, 2022, PGEO now directly or indirectly owns the rights to 13 geothermal energy concessions with a total installed capacity of 1,877 MW, of which 672 MW is self-operated and 1,205 MW is operated by Joint Operating Contractors (KOB). .

Research analysts at NH Korindo Sekuritas believe this move by Barito Renewables (BREN) is promising and fits well with the Indonesian government’s current target for renewable energy deployment.

Based on data from ThinkGeoEnergy and NS Energy, Indonesia is the second largest geothermal energy producer country in the world after the United States (US). In 2022, Indonesia will have a national power generation capacity of 2,356 megawatts (MW).

Looking at the performance of Barito Renewables Energy (BREN), Prajogo Pangestu’s new IPO. Barito Renewables Energy (BREN) IPO plan targeting IDR 3.51 trillion (approximately $228 million) in funding. Indonesia’s Energy Ministry ESDM confirms that Pertamina Geothermal (PGEO) wants to annex the Sorik Marapi PLTP, as we reported earlier this week. According to Leonardo, BREN’s presence on the Indonesian Stock Exchange (BEI) is expected to have an impact on the growth of market demand, where it will ultimately be one of the drivers for Indonesia to achieve its goal of becoming the country with the largest geothermal energy This condition is expected to be beneficial for BREN as well, as investors generally look for issuers that prioritize performance targets that are consistent with government policies. Meanwhile, BREN’s moves to conduct an IPO can be interpreted as a first step that encourages similar companies to undertake IPO activities in Indonesia, such as PT Supreme Energy.

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Source: Bisnis.com