PT Pertamina Geothermal Energy (PGEO), a subsidiary of State oil and gas company PT Pertamina, is planning to expand into two new lines of business − laboratory testing services and commercialization of two-phase fluid measuring instruments − as outlined in the company's Articles of Association and the 2020 Indonesian Standard Industrial Classification (KBLI).
PGEO will seek formal approval from its shareholders at the upcoming Annual General Meeting (AGM) scheduled for Tuesday, June 3, 2025.
In a disclosure to the Indonesia Stock Exchange, PGEO stated that it has engaged PT Karya Persada Panas Bumi (KPP) as a consultant and appointed the public appraisal firm Ruky, Safrudin & Rekan (RSR) to conduct a business feasibility study. This move complies with Financial Services Authority (OJK) Regulation No. 17/2020 regarding material transactions and changes in business activities. The feasibility study was completed on December 31, 2024.
"From the date of the feasibility study to the issuance of this report, no significant events have occurred that would materially affect the study’s results," Rudy M. Safrudin, Lead Business Appraiser at RSR, said in a statement released on Tuesday, May 20, 2025
RSR evaluated the proposed laboratory testing service based on market feasibility, technical viability, business model, management structure, and financial performance. The results concluded that the venture is financially sound.
The laboratory testing business is expected to begin generating revenue by 2026. Sales are projected to increase significantly by 141.50 percent in 2027, with an estimated average annual growth of 7.72 percent between 2027 and 2034. Net profit in 2027 is forecasted to rise 130.59 percent, with post-tax profit margins averaging 7.58 percent during the period. The initial investment of Rp155.8 million (US$9,500) is projected to be recovered within 3 years and 12 months.
According to PGEO management, this business expansion is intended to boost the company’s profitability and financial performance while strengthening geothermal energy’s contribution to national energy demands.
PGEO’s shareholding structure includes:
● PT Pertamina Power Indonesia: 28.5 billion shares (68.83 percent);
● Masdar Indonesia Solar Holdings RSC Limited: 6.2 billion shares (14.96 percent);
● PT Pertamina Pedeve Indonesia: 2.4 billion shares (5.97 percent);
● Public shareholders: 4.2 billion shares (10.24 percent).
Based on its financial report, PGEO posted a net profit of US$160.3 million for fiscal year 2024, marking a 1.9 percent decline from US$163.5 million in 2023. However, revenue rose slightly by 0.2 percent year-on-year, from US$406 million to US$407 million.
PGEO’s stock has shown strong performance in 2025. From a starting point of 940 on January 2, shares rose 32.62 percent to 1,240 as of market close on Monday, May 19, 2025.
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