Solid Business Performance: PGE Secures Rp 8.6 T Funding for Three Geothermal Projects
PT Pertamina Geothermal Energy Tbk (PGEO), known as PGE, has secured international funding support thanks to its strategic geothermal projects. This funding was obtained after three of the Company’s projects were included in the 2026 Green Book published by the Ministry of National Development Planning/Bappenas.
This achievement reflects the projects’ readiness to enter the next stage of development, alongside the Company’s business and operational performance, which continues to show positive growth. Based on financial reports as of 31 March 2026, PGE recorded a 40% increase in net profit to US$43.90 million, compared to US$31.35 million during the same period the previous year (YoY).
Additionally, the Company successfully booked revenue of US$116.56 million, an increase of 14.8% compared to US$101.507 million in the same period last year. This growth was driven by the effectiveness of the Company’s sustainable business strategies.
Positive performance was supported by consistent production growth. In 2025, PGE recorded an all-time high production of 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.
President Director of PGE, Ahmad Yani, stated that amidst the increasing demand for clean energy and global energy security challenges, the inclusion of the Company’s projects in the Bappenas 2026 Green Book is recognition of the projects’ readiness for the next development phase.
“We see that the positive performance recorded by the Company further strengthens various investors’ confidence in the business prospects and development of PGE’s projects. In addition to opening opportunities for access to various international funding sources that can support the acceleration of project realisation, this achievement also increases the visibility and attractiveness of the Company’s projects in the eyes of potential strategic partners and global funding institutions,” he said in a statement on Friday (5/6/2026).
Consequently, PGE is optimistic that the strengthening of business fundamentals, supported by an increasingly mature project portfolio, will serve as an important foundation for the Company’s sustainable growth, including supporting the national energy transition agenda.
The three projects include the Lumut Balai Geothermal Power Plant (PLTP) Unit 3 (55 megawatts/MW), PLTP Lumut Balai Unit 4 (55 MW), and PLTP Lahendong Unit 7-8 (50 MW).
With the inclusion of these three projects in the Green Book, the funding obtained is expected to help the Company maintain a competitive cost of debt while improving the long-term economics of the projects.
“In addition to helping maintain a healthy funding structure and a competitive cost of debt, the inclusion of these three projects also has the potential to improve project economics, thereby providing sustainable added value for the Company and its stakeholders,” said Ahmad Yani.
The 2026 Green Book, officially named the 2026 Foreign Loan Priority Plan List, contains national projects that have successfully secured foreign funding commitments coordinated by the Indonesian Government through various international development partners. The list was prepared based on the Decree of the Minister of National Development Planning/Head of Bappenas Number Kep. 52/M.PPN/IIK/06/2026.
Previously, these projects were included in Bappenas’s 2025-2029 Medium-Term Foreign Loan Plan List (Blue Book), having met various technical, financial, environmental, and institutional readiness requirements. Inclusion in the Green Book marks a significant milestone towards implementation and further development.
Furthermore, the three projects are listed under an on-lending scheme through concessional loan financing, which offers more attractive interest rates and longer tenures compared to commercial financing. The total value of the loans listed in the 2026 Green Book reaches US477.87million, equivalenttoRp8.6trillion(assuminganexchangerateofRp18, 000/US), with the following breakdown:
PLTP Lumut Balai Unit 3 (target COD 2030): US$158.86 million from JICA
PLTP Lumut Balai Unit 4 (target COD 2032): US$148.97 million from JICA
PLTP Lahendong Unit 7-8 (target COD 2030): US$170.04 million from the World Bank
These three projects are part of PGE’s roadmap to develop geothermal potential up to 3 gigawatts (GW). Once operational, these projects will increase the supply of low-emission electricity and strengthen the role of geothermal energy in the national energy mix.
PLTP Lumut Balai Unit 3 and PLTP Lumut Balai Unit 4, located in Muara Enim and Ogan Komering Ulu (OKU) Regencies, South Sumatra Province, will expand PGE’s geothermal development in the Sumatra region. Both projects already have Power Purchase Agreements (PPA) supporting their future development prospects, with PLTP Lumut Balai Unit 4 included in PLN’s 2025-2034 Electricity Supply Business Plan (RUPTL).
Meanwhile, the capacity increase through PLTP 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 the total electricity requirement.
In line with this development, 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.