Indonesia advances four major geothermal projects with strong global funding potential.
Indonesia is accelerating its renewable energy transition as four geothermal developments by PT Pertamina Geothermal Energy secure a place in the national Blue Book, opening the door to large-scale international financing and long-term clean energy gains.
Major Geothermal Projects Enter National Priority Pipeline
Four geothermal initiatives operated by PT Pertamina Geothermal Energy have been included in the Ministry of National Development Planning’s 2025–2029 Blue Book, a key document identifying nationally strategic projects eligible for international financing. The combined funding potential reaches up to US$613 million, or around Rp10 trillion, marking one of Indonesia’s strongest pushes toward geothermal expansion.
These projects are expected to generate an estimated value of US$1.09 billion while adding 215 MW of low-emission electricity to the national grid. According to PGE Director Edwil Suzandi, their development is positioned to advance Indonesia’s renewable capacity and support regional communities through job creation and economic uplift.
Strengthening National Geothermal Capacity
The listed projects cover strategic geothermal clusters across Indonesia. The Lumut Geothermal Plant Units 3 and 4 in South Sumatra, valued at US$305 million and US$290 million respectively, will reinforce the region’s growing geothermal corridor. Edwil emphasized that each development holds a unique national function, contributing both to energy resilience and Indonesia’s decarbonization targets.
In Lampung, the Gunung Tiga or Ulubelu Geothermal Plant Extension I aims to bolster clean energy supply with two-phase binary technology. The project is valued at US$227 million and will help meet rising regional electricity demand while reducing reliance on fossil sources.
Driving North Sulawesi’s Clean Energy Expansion
In North Sulawesi, the Lahendong Unit 7–8 and Binary project, worth US$274 million is intended to expand geothermal utilization in one of Indonesia’s most established volcanic energy zones. The region already hosts several geothermal operations, and the new units will amplify both capacity and technological innovation.
Financing Pathways Through International Partnerships
Edwil highlighted that foreign financing may be sourced from institutions such as the World Bank, the Asian Development Bank, JBIC, or JICA under concessional loan schemes. These mechanisms offer lower borrowing costs, improving long-term viability. Through the Subsidiary Loan Agreement scheme, project IRR could improve by 1 to 3 percent, significantly enhancing investor confidence.
Preparing for Green Book Eligibility
Now listed in the Blue Book, PGE is entering negotiations covering loan tenor, interest rates, financing structures, and environmental safeguards. The next milestone is fulfilling criteria for the Green Book, which signals readiness to access full international funding. This process involves collaboration between Pertamina, Bappenas, and the Ministry of Finance as Indonesia advances toward a more sustainable energy landscape.
Long-Term Contribution to Energy Transition
Projected to begin phased operations between 2029 and 2032, the geothermal projects mark a pivotal step in Indonesia’s transition to cleaner electricity. Their success is expected to deliver measurable economic, environmental, and social value across multiple provinces.
Indonesia’s inclusion of these four geothermal projects in the Blue Book signals a major acceleration in clean energy development. For Indonesians, the initiatives promise regional job growth, stronger energy security, and reduced emissions. For Singaporeans and regional partners, the progress reinforces Southeast Asia’s shift toward sustainable energy systems and new opportunities for cross-border collaboration.
Sources: EN Tempo (2025)
Keywords: Geothermal Projects Indonesia, Pertamina Geothermal Energy, International Funding, Blue Book, Renewable Energy Transition
