Performance Soars in 2025, PGE Strengthens Geothermal's Position as Backbone of Energy Transition
PT Pertamina Geothermal Energy Tbk (PGE) (IDX: PGEO) recorded positive business trends throughout 2025. This achievement serves as a strong signal that Bulai’s geothermal energy is shifting from merely an alternative source to the backbone of Indonesia’s clean energy transition.
Based on the audited financial report as of 31 December 2025, PGEO booked revenues of US$432.72 million, up from US$407.12 million the previous year.
Not only in financial terms, the company also achieved a record all-time high in green electricity production of 5,095 gigawatt hours (GWh), an increase of 5.55% compared to 2024.
Energy observer Hadi Ismoyo assesses this achievement as reflecting a crucial momentum for national geothermal development. Currently, PGE’s installed capacity has reached 727 megawatts (MW), a significant rise from the previous 672 MW.
“Indonesia’s geothermal potential is enormous and has not yet been optimally utilised. From all the available potential, there is still vast room for growth,” said Hadi on Tuesday (17/3).
Hadi emphasised that geothermal has advantages as a stable baseload energy compared to other renewables like solar or wind. However, he reminded that this corporate success must be accompanied by strong policy support.
“In the context of the national energy mix, performance like this needs full support, both in terms of regulation, incentives, and investment facilitation,” he added.
In line with the government’s targets in PLN’s Electricity Supply Business Plan (RUPTL), renewable energy capacity is projected to grow by up to 76% in the 2025–2034 period.
Executive Director of the Center for Energy Security Studies (CESS), Ali Ahmudi Achyak, described geothermal as a game changer in maintaining the reliability of the electricity system while curbing carbon emissions. Moreover, the government has set an economic growth target of 8%.
“Because every one percent of economic growth is supported by 1.8 percent growth in electricity supply,” explained Ali.
According to him, if PGE’s positive performance is sustained, Indonesia’s energy transition could proceed more aggressively, given that Indonesia possesses one of the world’s largest geothermal reserves.
Despite the bright prospects, Ali warned of classic challenges in the sector, such as high initial exploration costs, project risks, and the need for supporting infrastructure. He stressed that collaboration between the government, state-owned enterprises, and the private sector is key to unlocking the still-buried potential.
“With the vast potential that has not been fully developed, geothermal is not only an economic opportunity but also a long-term strategy towards sustainable energy independence,” he concluded.