Indonesia and Türkiye Agree on Geothermal Cooperation

February 8, 2024

Pertamina Geothermal Energy (PGE) signed a Memorandum of Confidentiality Agreement (CA) with the energy company from Turkiye, Kipaş Holding on Saturday, 3/2/2024. The two energy companies agreed to start cooperation in the energy sector in the geothermal. The signing of the agreement was carried out by Julfi Hadi (President Director of PGE) and Mehmet Sisman (GM Kipaş Holding) witnessed by the Indonesian Ambassador to Turkiye Achmad Rizal Purnama in Istanbul.

“Thank God, this afternoon PGE and Kipaş Holding have agreed to start geothermal cooperation. For almost four months we have been seriously exploring opportunities for economic cooperation in the energy sector, and today that hard work has paid off,” said Ambassador Rizal. It was further explained that the Indonesian Embassy in Ankara had facilitated PGE’s efforts to seek potential cooperation in geothermal exploration and operations with several energy companies in Turkiye. Various meetings, both face-to-face and online, including visits to the field and geothermal power plant have been carried out to find the right potential partner. In the previous initial meeting, PGE and Kipaş Holding were interested in carrying out exploration cooperation in both Turkiye and Indonesia and even opened up the possibility of joint investment in third countries.

Apart from Kipaş Holding, Ambassador Rizal also facilitated PGE to meet with several other energy companies. “During PGE’s visit to Turkey this time we also met with several top energy companies and held long discussions at each meeting. Hopefully in the near future we can find 1 or 2 more potential partners for investment in Turkey.” That is the explanation from Julfi Hadi, Managing Director of PGE.

After opening cooperation with Kenya, Turkiye is the second country where PGE has carved out its international portfolio. The main factor to be taken into consideration is that the potential for geothermal energy in Turkiye is quite large. As the fourth country with the largest geothermal potential in the world, Turkiye is also attractive to investors because it has a feed-in-tariff policy. This is the goodwill of the Turkish government to assure investors in the geothermal energy sector of long-term regulatory certainty and competitive price incentives.

Ambassador Rizal, who just handed over his credentials in mid-January, also underlined energy cooperation as an element of his 4+1 mission priorities as Indonesian Ambassador to Turkish President Recep Tayyip Erdogan, namely Defense, Energy, Construction and Health, and Trade. President Erdogan welcomed this by assigning his main officials to oversee Indonesia-Turkiye cooperation projects.

Originally posted by the Embassy of Indonesia in Ankara. To access the original article, please click here.