Jakarta, December 4, 2025 – PT Pertamina Geothermal Energy Tbk (PGE) (IDX: PGEO) is strengthening its position as a leader in national clean energy development. This is evidenced by the designation of four strategic PGE geothermal projects in the 2025–2029 Blue Book by the Ministry of National Development Planning/Bappenas. This designation follows PGE's official submission through PT Pertamina (Persero), marking a significant milestone in developing geothermal potential as the backbone of the national energy transition.
The four PGE projects included in the 2025–2029 Blue Book include Lumut Balai Unit 3, Lumut Balai Unit 4, Gunung Tiga/Ulubelu Extension I, and Lahendong Units 7–8 & Binary. The total investment value for these four projects exceeds USD 1.09 billion. The realization of these projects is projected to add 215 MW of low-emission electricity capacity, planned to be operational in stages from 2029 to 2032. This reinforces the Company's commitment to developing its 3 GW geothermal potential.
These four projects have the potential to obtain foreign funding through an indicative concessional loan scheme worth up to USD 613 million, potentially from a number of multilateral institutions such as the World Bank, ADB, JBIC, or JICA.
Edwil Suzandi, Director of Exploration & Development at PT Pertamina Geothermal Energy Tbk, stated that this funding represents a concrete step by PGE to support the acceleration of the energy transition while strengthening the company's contribution to energy self-sufficiency.
"The development of these projects not only increases the national renewable energy mix but also creates multiplier effects for communities surrounding their operational areas, from creating new jobs to growing local economic activity. PGE remains committed to improving national energy security by providing stable, reliable, and sustainable clean electricity to achieve the 2060 Net Zero Emission target," Edwil Suzandi emphasized.
Each project has distinct characteristics and strategic roles in strengthening the national geothermal portfolio. Lumut Balai Unit 3 (Capex USD 305 million) and Lumut Balai Unit 4 (Capex USD 290 million) will strengthen PGE's geothermal development cluster in South Sumatra. Meanwhile, Gunung Tiga/Ulubelu Extension I (Capex USD 227 million) will increase the clean energy supply in Lampung Province through the implementation of two-phase binary technology, which offers higher efficiency. In North Sulawesi, the Lahendong Units 7–8 & Binary project (Capex USD 274 million) expands geothermal development in one of Indonesia's largest geothermal potential areas.
In addition to strengthening the national renewable energy mix, these projects also have a significant economic impact. Through the Subsidiary Loan Agreement (SLA) scheme, a loan mechanism provided by a multilateral institution to the Indonesian government that offers low-cost, long-term financing, the economic viability of the projects is further strengthened. This financing scheme has the potential to increase the project's Internal Rate of Return (IRR) by 1–3%, thereby providing added value to the company while ensuring long-term investment sustainability.
In the next stage, PGE will enter into negotiations with multilateral institutions to obtain the most optimal financing terms, including the financing structure, interest rate, tenor, and technical and environmental requirements. This effort is expected to accelerate the project development process effectively and sustainably.
PGE's efforts do not stop at designating projects for the Blue Book. The company is currently developing readiness criteria as a prerequisite for inclusion in the Green Book, which opens full access to foreign funding. This process is being carried out in collaboration with PT Pertamina (Persero), the Ministry of National Development Planning/Bappenas, and the Ministry of Finance to ensure all technical, social, environmental, and financial aspects are fully prepared.
By designating four projects for the Blue Book and taking further steps towards the Green Book, PGE affirms its commitment to making Indonesia a global powerhouse for green energy. Through technological innovation, sustainable utilization of geothermal resources, and close collaboration with various stakeholders, PGE will continue to deliver clean energy that provides tangible benefits to the community while strengthening the national economy.
