PGE Partners with Bank Mizuho to Strengthen Green Funding for Geothermal Development

PT Pertamina Geothermal Energy Tbk (PGE) has signed a Trade Facility Agreement with PT Bank Mizuho Indonesia for a non-cash credit facility with a ceiling of USD 75 million, provided without collateral. PGE Finance Director Fransetya Hutabarat stated that the facility would support the company’s operational requirements and future project development, while also serving as a foundation for a mutually beneficial long-term partnership. He noted that the facility reflects a high level of confidence in PGE’s risk profile and financial performance. The omnibus facility encompasses bank guarantees, standby letters of credit (SBLC), import letters of credit (L/C), account payable financing (APF), and a revolving loan facility. Fransetya expressed belief that this collaboration is a strategic step to broaden the company’s funding access and strengthen financing flexibility to support its long-term growth agenda. PT Bank Mizuho Indonesia Marketing Director Heru Gautama Hatman said the cooperation demonstrates the bank’s commitment to supporting clean energy development in Indonesia and strengthening its long-term collaboration with PGE. He expressed hope that the partnership would support PGE’s ambition to become a leading example of geothermal development, both in Indonesia and globally. The collaboration with Bank Mizuho Indonesia, part of one of Japan’s largest financial services groups, further strengthens PGE’s green funding ecosystem, which has previously been supported by various financing sources, including sustainable funding instruments and cooperation with international financial institutions. As a world-leading geothermal producer and centre of excellence, PGE continues to prioritise sound and prudent funding strategies to ensure the sustainability of investments in geothermal development projects. Through collaboration with international financial institutions, the company is reinforcing its funding foundation to support a target of 1 GW of independently managed installed capacity by 2028, rising to 1.8 GW by 2034. These efforts strengthen PGE’s contribution to accelerating national geothermal development while supporting Indonesia’s energy security and self-sufficiency as it enters the second century of geothermal development.