Indonesia's Pertamina Geothermal shares end first trading day flat - Nikkei Asia
Published June 10, 2026
Indonesia's Pertamina Geothermal Shares Conclude First Day of Trading Unchanged
On its inaugural day of trading, shares of Pertamina Geothermal Energy, a subsidiary of Indonesia's state-owned oil and gas company Pertamina, ended the session flat. The company made its debut on the Indonesia Stock Exchange (IDX) on October 2, 2023, with an initial public offering (IPO) that raised approximately 2.5 trillion rupiah (around $165 million).
Pertamina Geothermal offered 2.5 billion shares at a price of 1,000 rupiah each. This pricing was at the lower end of the initial price range of 1,000 to 1,200 rupiah, which had been set ahead of the IPO. The shares opened at 1,000 rupiah and maintained this level throughout the trading day, concluding the session without any fluctuations.
The IPO was part of a broader strategy by the Indonesian government to attract investment into renewable energy, specifically geothermal power, which is abundant in the archipelago. Indonesia is home to around 40% of the world’s geothermal resources, making it a significant player in this sector.
As part of its growth strategy, Pertamina Geothermal aims to expand its capacity from the current 672 megawatts (MW) to 1,600 MW by 2027. This expansion is expected to contribute to the Indonesian government's target of achieving 23% of its energy mix from renewable sources by 2025. The company has plans for several new geothermal power plants, which will help meet the growing energy demand in Indonesia while also supporting the country’s commitment to reducing carbon emissions.
The government has been actively promoting investment in renewable energy, and the IPO of Pertamina Geothermal is seen as a pivotal step in this direction. The Ministry of Energy and Mineral Resources has set ambitious targets for renewable energy development, aiming to increase the share of renewables in the national energy mix significantly over the next few years.
Investors have shown interest in the geothermal sector due to its potential for stable returns and the growing global emphasis on sustainable energy. Pertamina Geothermal's IPO is expected to attract both domestic and international investors, further solidifying Indonesia's position as a leader in geothermal energy production.
In addition to the IPO, Pertamina Geothermal has been exploring partnerships with various stakeholders to enhance its geothermal exploration and production capabilities. The company is focusing on innovation and technology to improve efficiency in its operations, which is vital for maintaining competitiveness in the renewable energy market.
As the world increasingly shifts towards cleaner energy sources, the significance of geothermal energy is gaining recognition. Geothermal energy provides a reliable and consistent power supply, making it an attractive option for countries looking to diversify their energy portfolios and reduce reliance on fossil fuels.
In conclusion, while Pertamina Geothermal's shares ended their first trading day unchanged, the company's future prospects remain positive, driven by Indonesia's commitment to renewable energy and the vast geothermal potential that the country possesses. The successful IPO marks a significant milestone in the efforts to enhance the role of geothermal energy in Indonesia's energy landscape.
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