PGE Says Solid Operations Support Company’s Financial Fundamentals

Pertamina Geothermal Energy (PGE) Finance Director Fransetya Hasudungan Hutabarat said solid operational performance had supported the company’s financial fundamentals. In the first half of 2026, revenue reached US$235.027 million, up 14.7 per cent year on year from US$204.850 million in the same period a year earlier.

“PGE’s fundamentals remain strong. Production has grown beyond target, profit has increased by double digits and our balance sheet is healthy. Going forward, we will continue to expand access to competitively priced financing,” Fransetya said in a statement in Jakarta on Monday.

Several strategic projects have been included in Bappenas’ 2026 Green Book, he said, opening up opportunities for concessional financing from international financing institutions at a lower cost of capital. Lower financing costs are expected to improve project economics and investment competitiveness.

Fransetya said PGE’s focus was not merely on securing funding. The company is also optimising its capital structure by maintaining a balance between equity and debt, while preserving a strong credit profile.

“This enables us to continue creating long-term value for all shareholders and investors,” he said.

PGE is pursuing a growth strategy through the optimisation of existing assets, capacity expansion and the development of new revenue streams. Projects under development include Lumut Balai Units 3 and 4, Hululais Units 1 and 2, and Lahendong Units 7 and 8.

The company is targeting installed capacity of 1 gigawatt (GW) by 2028 and 1.8 GW by 2034, he added.

Net profit accelerated in the second quarter of 2026, rising from US$43.899 million in the first quarter to a cumulative US$79.605 million by the end of June, up 15.48 per cent year on year.

Alongside profit growth, the company’s capital structure has also improved, Fransetya said. Equity stood at US$2.006 billion, while liabilities fell 2.80 per cent from the end of 2025 to US$961.184 million.