Indonesian Prajogo Pangestu gains full control of Star Energy by buying BCPG’s 33% stake in Thailand for $440 million
Green Era, a Singapore-based private company controlled by Indonesian billionaire Prajogo Pangestu, bought 33.33% of Star Energy from Thailand’s BCPG for $440 million, giving it full ownership of three geothermal projects in Indonesia.
Star Energy projects have a total gross capacity of 875 MW. Prajogo Pangestu already owned 66.6% of Jakarta-headquartered Star Energy through Barito Pacific, Indonesia’s largest integrated petrochemical producer.
The acquisition is the first for Green Era, which announces the launch of a portfolio of renewable assets in Southeast Asia. “This acquisition is a major step to effectively kick-start Green Era’s exciting growth and investment plans,” Green Era Chief Executive Nancy Pangestu said in a statement.
Star Energy’s three projects – Wayang Windu Geothermal Power Plant, Salak Geothermal Power Plant and Darajat Geothermal Power Plant – are all located in the province of West Java. In 2019, the company announced plans to invest $2.5 billion to expand capacity to 1,200 MW in 2028.
According to Indonesia National Energy Board in February, Southeast Asia’s largest economy has geothermal potential of up to 23.7 GW or 40% of global capacity. However, currently Indonesia has used only 4.5% of its potential.
Research published by EY in April 2021 indicated that there were up to 800 clean energy projects underway in eight Asian economies: Indonesia, Japan, Malaysia, Philippines, South Korea, Taiwan, Thailand and Vietnam. EY estimated the total investment cost for all projects at $316 billion.
On the 2021 list of Indonesia’s 50 richest, Prajogo Pangestu was ranked No. 5, with a net worth of $6.1 billion.