Jakarta. Pertamina Geothermal Energy (PGE), a subsidiary of state-owned energy company Pertamina, has recently entered into a Non-Disclosure Agreement (NDA) with Kipas Holding, Turkey's third-largest geothermal supplier. 

The cooperation between PGE and Kipas Holding involves exploring business opportunities, strategic synergy, and leveraging favorable government policies, particularly the feed-in tariff, to support PGE's global expansion and commitment to decarbonization. 

Julfi Hadi, the CEO of PGE underlined the company's commitment to exploring collaborative ventures with geothermal entities worldwide. Julfi underscored the impact of the Turkish government's privatization policies on geothermal energy, emphasizing the advantageous feed-in tariff offered for long-term foreign investments. The NDA was formally signed on Friday, witnessed by the Indonesian Ambassador to Turkey, Achmad Rizal Purnama.

"Our efforts to position PGE for global business expansion have yielded positive insights. This visit is a tangible manifestation of our commitment as a key player in the global decarbonization effort," said Julfi on Monday.

A feed-in tariff (FiT) is a policy mechanism designed to promote the generation of renewable energy by providing a guaranteed payment or premium rate for electricity fed back into the grid from renewable energy sources.

Mehmet Sisman, General Manager of Kipas Holding, expressed enthusiasm about the collaboration with PGE. He is optimistic this partnership would yield positive outcomes through the exchange of valuable information and experiences, contributing to the enhancement of the geothermal energy sector in both Turkey and Indonesia.

Julfi stressed the strategic importance of this collaboration, portraying it as a pivotal step in PGE's global expansion strategy. He revealed that PGE currently holds several Non-Disclosure Agreements with prominent geothermal developers in Turkey.

Apart from Turkey, PGE initiated collaborative ventures in geothermal development with Kenya last year, currently in progress.

"In the future, PGE remains committed to exploring opportunities with geothermal developers who demonstrate financial strength, efficient management, substantial installed capacity, and expertise in the geothermal domain," Julfi said.