PGEO's Strategic Role in Indonesia's Energy Transition

Geothermal Energy Leadership

PT Pertamina Geothermal Energy Tbk (PGEO) is positioned as a key player in Indonesia's energy transition according to analysts from Bahana Sekuritas. The company's focus on geothermal energy is seen as crucial for maintaining electrical system reliability while simultaneously increasing the nation's renewable energy mix.

Growth Prospects and Targets

PGEO has set ambitious targets: 1 gigawatt capacity by 2028 and 5.5-6.0 GWh production. These targets are viewed as offering a combination of measured growth and a defensive business profile, making PGEO an attractive prospect in the renewable energy sector. The company's growth is considered more predictable compared to other renewable energy segments or mineral and metal mining sectors.

Market Position and Investment Potential

The stock shows positive potential with more measured growth compared to other renewable energy or mining sectors. Analyst Jeremy Mikael from Bahana Sekuritas highlights that PGEO's business profile is relatively defensive while maintaining growth potential. This positions PGEO as a significant contributor to Indonesia's energy transition goals while providing a stable investment opportunity in the renewable energy space.