Jakarta — PT Pertamina Geothermal Energy Tbk (IDX: PGEO) has secured international financing commitments of up to USD477.87 million for three geothermal power projects after they were included in the government’s Green Book 2026, a list of priority projects eligible for foreign loans coordinated through international development partners.
The geothermal developer said in a disclosure to the IDX, Sunday, June 7, the inclusion of the projects in the Green Book, published by the Ministry of National Development Planning (Bappenas), reflects their readiness to move into the next phase of development and strengthens access to concessional financing from global lenders.
The three projects are the 55-megawatt (MW) Lumut Balai Unit 3 geothermal power plant, the 55 MW Lumut Balai Unit 4 project, and the 50 MW Lahendong Units 7-8 geothermal expansion project. Together, they are expected to receive financing through an on-lending scheme worth USD477.87 million. The funding package includes USD158.86 million from the Japan International Cooperation Agency (JICA) for Lumut Balai Unit 3, USD148.97 million from JICA for Lumut Balai Unit 4, and USD170.04 million from the World Bank for Lahendong Units 7-8.
The funding announcement comes as PGE reported stronger financial and operational performance in the first quarter of 2026. The company posted a 40% year-on-year increase in net profit to USD43.9 million, while revenue rose 14.8% to USD116.56 million. Electricity production climbed 15.22% from a year earlier to 1,370 gigawatt-hours (GWh).
PGE President Director Ahmad Yani said the Green Book inclusion demonstrates growing investor confidence in the company’s geothermal portfolio and supports efforts to accelerate project implementation.
“We are optimistic that stronger business fundamentals, supported by an increasingly mature project portfolio, will become an important foundation for the company’s sustainable growth while supporting Indonesia’s energy transition agenda,” Yani said.
The projects form part of PGE’s roadmap to expand its geothermal capacity to 3 gigawatts (GW). Once operational, the new facilities are expected to increase the supply of low-emission electricity and strengthen geothermal energy’s contribution to Indonesia’s energy mix.
Located in South Sumatra, Lumut Balai Units 3 and 4 will expand geothermal development in Sumatra and already have power purchase agreements in place. Meanwhile, the Lahendong Units 7-8 project in North Sulawesi is expected to increase PGE’s contribution to the province’s electricity supply from around 30% to between 35% and 40% of total demand.
PGE, which describes itself as one of the world’s leading geothermal producers, said it will continue pursuing growth through asset optimisation, business expansion, and the development of new revenue streams, while supporting Indonesia’s transition to cleaner energy sources. (nsh)
Banner photo: The Lahendong Geothermal Power Plant Units 5 and 6 in Tompaso, Minahasa Regency, North Sulawesi. (Photo: Hartatik)
