Solid Business Performance: PGE Secures Rp 8.6 T Funding for Three Geothermal Projects

PT Pertamina Geothermal Energy Tbk (PGE) has obtained international funding support for its strategic geothermal projects after three company projects were entered into the Green Book 2026 published by the Ministry of National Development Planning/National Development Planning Agency (Bappenas). This achievement reflects the project readiness to enter the next development phase, alongside the company’s business and operational performance which continues to show positive growth. Based on the financial report as of 31 March 2026, PGE recorded a 40% increase in net profit to US$43.90 million, compared to US$31.35 million in the same period the previous year (YoY). The company also booked revenue of US$116.56 million, an increase of 14.8% compared to US$101.507 million YoY. This growth was driven by the effectiveness of the sustainable business strategy implemented by the company. Positive performance was supported by consistent production growth. In 2025, PGE recorded the highest production in its history with total production reaching 5,095 gigawatt hours (GWh), an increase of 5.55% compared to 4,827 GWh in 2024. This positive trend continued into the first quarter of 2026, when electricity production increased by 15.22% (YoY) to 1,370 GWh. PGE President Director Ahmad Yani stated that amidst the increasing demand for clean energy and global energy security challenges, the inclusion of the company’s projects in Bappenas’ Green Book 2026 is a recognition of project readiness to enter the next development phase. The three projects include the Lumut Balai Geothermal Power Plant (PLTP) Unit 3 (55 MW), Lumut Balai Unit 4 (55 MW), and Lahendong Unit 7-8 (50 MW). Green Book 2026, officially named the List of Priority Plans for Foreign Loans for 2026, contains national projects that have successfully obtained foreign funding commitments coordinated by the Government of Indonesia through various international development partners. Previously, these projects were included in Bappenas’ Medium-Term Foreign Loan Plan List 2025-2029 (Blue Book), having met various required technical, financial, environmental, and institutional readiness aspects. The three projects are listed under an on-lending scheme through concessional loan financing, which offers more attractive interest rates and longer tenors compared to commercial financing. The total loan value listed in the Green Book 2026 reaches US$477.87 million, equivalent to Rp 8.6 trillion, with details including Lumut Balai Unit 3 (target COD 2030) receiving US$158.86 million from JICA, Lumut Balai Unit 4 (target COD 2032) receiving US$148.97 million from JICA, and Lahendong Unit 7-8 (target COD 2030) receiving US$170.04 million from the World Bank. The three projects are part of PGE’s roadmap to develop geothermal potential up to 3 gigawatts (GW). Once operational, these projects will increase low-emission electricity supply and strengthen geothermal’s role in the national energy mix. Lumut Balai Unit 3 and Unit 4, located in Muara Enim Regency and Ogan Komering Ulu Regency, South Sumatra Province, will expand PGE’s geothermal development in the Sumatra region. The addition of production capacity through Lahendong Unit 7-8 and the Binary Unit in Minahasa Regency, North Sulawesi, will increase PGE’s contribution to meeting North Sulawesi’s electricity needs from 30% to 35-40% of total demand. As a world-leading geothermal producer, PGE continues to focus on long-term growth through three main strategies: optimisation of existing assets, business expansion, and diversification of new revenue sources.