PGEO's 2025 Performance Shows Positive Growth, Experts Highlight Geothermal Prospects for Clean Energy Investment
Jakarta (ANTARA) - The financial and operational performance of PT Pertamina Geothermal Energy Tbk (PGEO) throughout 2025 demonstrated a positive trend, strengthening the investment appeal in the geothermal energy sector. This was stated during the Annual General Meeting of Shareholders (AGMS) for the 2025 fiscal year held by the company.
PGEO recorded revenue of US$432.73 million and net profit of US$137.67 million. Additionally, the company achieved a record-high production throughout its history (all-time high). Operationally, electricity production reached 5,095.48 gigawatt hours (GWh), an increase of 5.55% compared to the previous year, driven by the operation of the Lumut Balai Unit 2 geothermal power plant project.
Energy observer and Member of the Supervisory Board of Rumah Energi, Elrika Hamdi, assessed that these achievements reflect the increasingly strategic role of geothermal energy in the national energy mix.
According to Elrika, the geothermal sector has significant potential in line with Indonesia’s energy transition plans, given the many geothermal fields that can still be developed. She also evaluated PGEO’s financial performance as demonstrating the management’s ability to handle financial aspects and technical risks.
“If we look at Indonesia’s future energy transition plans, PGEO’s business has high potential for growth because there are still several geothermal fields that can be explored,” she said.
She added that compared to other renewable energy sources, geothermal is known as a stable energy source with a capacity factor of up to 90% and capable of operating continuously.
Nevertheless, Elrika reminded that the main challenges in geothermal development lie in the initial stages, from identification to exploration, which require a long time and a social approach to communities around the project areas.
“Once operational, geothermal power plants generally perform well and are profitable. However, the main challenges are in the early process, which is full of risks,” she said.
Furthermore, she assessed that PGEO’s consistent performance serves as a positive signal for the market and can encourage new investments in the renewable new energy sector, which has long required long-term commitments and policy certainty.
In line with this, the government through the Electricity Supply Business Plan (RUPTL) targets the share of new renewable energy power plant capacity to reach 76% in the 2025–2034 period. Geothermal energy is targeted to contribute 5.2 gigawatts (GW).
PGEO’s performance is seen as aligned with Indonesia’s efforts to reduce carbon emissions, as outlined in the 2022 Enhanced Nationally Determined Contribution (ENDC) document, which targets a 31.89% emission reduction independently by 2030.
With these achievements, PGEO is expected to become one of the main catalysts in accelerating geothermal energy development while strengthening Indonesia’s position in the global energy transition map.