Economist values geothermal projects as attractive for global funding
Jakarta - Economist Dipo Satria Ramli from the Center of Reform on Economics (CORE) Indonesia assessed that geothermal projects are attracting global funding interest in line with growing investor appetite for the clean energy sector.
“There are indeed certain niche investor types that focus solely on clean energy. So, geothermal projects with clear prospects will be very attractive to them,” Dipo said in a statement received in Jakarta on Thursday.
According to Dipo, PT Pertamina Geothermal Energy Tbk (PGEO) is among the companies in a favourable position because it has a relatively mature project portfolio compared to many other developers. Project readiness is one of the main factors investors consider before committing capital.
In early June 2026, three PGE geothermal projects have the potential to secure international funding support after being included in the Green Book 2026 by the Ministry of National Development Planning/National Development Planning Agency (Bappenas).
The three projects include the Lumut Balai Geothermal Power Plant (PLTP) Unit 3 (55 megawatt/MW), PLTP Lumut Balai Unit 4 (55 MW), and PLTP Lahendong Unit 7–8 (50 MW).
Projects that already have offtaker certainty, supporting infrastructure readiness, and a clear development roadmap will more easily obtain financing access from financial institutions and international investors.
Beyond project readiness, the geothermal business scheme in Indonesia is also considered to have its own appeal. Dipo noted that revenue from geothermal electricity sales to PT PLN (Persero) is denominated in US dollars, thereby reducing exchange rate fluctuation risk.
“Revenue payments from PLN for geothermal are made in US dollars. So even if the rupiah weakens, it remains attractive because there is no significant currency risk,” Dipo said.
Dipo added that the funding needs to support the global energy transition will continue to increase in the coming decades. This condition opens opportunities for green energy projects with strong business prospects to obtain more diverse funding sources.
“The energy transition requires large and sustainable investment. In that context, Indonesia’s geothermal energy has a very good opportunity to become a magnet for global funding,” Dipo said.
As the country with the second-largest geothermal potential in the world, Indonesia holds a strategic position in attracting global green investment.
Geothermal energy also plays an important role in supporting national energy security because it can provide a stable electricity supply around the clock (baseload).
In line with the national energy transition agenda, geothermal development is one of the priorities in PLN’s 2025–2034 Electricity Supply Business Plan (RUPTL) through the target of increasing new and renewable energy capacity.