PT Pertamina Geothermal Energy has secured international financing support of $477.87 million for three strategic geothermal power projects in Indonesia, strengthening the company’s push to expand low-emission electricity supply.
The funding covers Lumut Balai Unit 3, Lumut Balai Unit 4 and Lahendong Units 7–8. The projects have been included in Indonesia’s Green Book 2026, making them priority foreign-loan projects coordinated through the national planning ministry.
Key Overview
- Pertamina Geothermal Energy has secured $477.87 million in international financing support.
- JICA will back Lumut Balai Unit 3 and Unit 4.
- The World Bank will support Lahendong Units 7–8.
- The three projects will add geothermal capacity in Sumatra and Sulawesi.
- The funding is structured through concessional loans with more attractive terms than commercial debt.
- The projects support Indonesia’s wider energy transition and geothermal expansion agenda.
Three Projects Win International Financing Support
Pertamina Geothermal Energy said in an official project update that the three geothermal projects have entered Indonesia’s Green Book 2026, formally known as the list of priority foreign loan plans for the year.
The largest single allocation is $170.04 million from the World Bank for Lahendong Units 7–8, which will add 50 MW of geothermal capacity in North Sulawesi. JICA will provide $158.86 million for Lumut Balai Unit 3 and $148.97 million for Lumut Balai Unit 4, both 55 MW projects in South Sumatra.
According to sector reporting, Lumut Balai Unit 3 is targeting commercial operation in 2030, Lumut Balai Unit 4 in 2032, and Lahendong Units 7–8 in 2030. The combined projects will give PGE a larger operating base while supporting Indonesia’s low-carbon electricity pipeline.
Green Book Status Improves Project Bankability
The Green Book listing is important because it signals that the projects have passed key readiness checks and are eligible for coordinated foreign financing. PGE said the projects had previously been included in the 2025–2029 Blue Book, meaning they had already met technical, financial, environmental and institutional requirements.
This matters for financing costs. PGE said the concessional loan structure should help maintain a competitive cost of debt and improve long-term project economics. For geothermal developers, financing terms are critical because exploration, drilling and early-stage infrastructure require heavy upfront capital before revenue begins.
PGE President Director Ahmad Yani said the inclusion of the projects in the Green Book reflects stronger confidence in the company’s project pipeline and creates better visibility for potential strategic partners and global funding institutions.
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Lumut Balai Strengthens Sumatra’s Clean Power Base
The Lumut Balai projects are a major part of PGE’s expansion in South Sumatra. The company said in a separate Lumut Balai Unit 3 update that infrastructure work had already begun in preparation for drilling.
Lumut Balai Unit 3 follows the 55 MW Lumut Balai Unit 2, which began commercial operations in June 2025. Unit 3 and Unit 4 are expected to deepen PGE’s geothermal footprint across Muara Enim and Ogan Komering Ulu, while giving South Sumatra a larger source of stable renewable baseload power.
PGE said Lumut Balai Unit 3 and Unit 4 already have power purchase agreements, strengthening their development prospects. Unit 4 is also listed in PLN’s 2025–2034 electricity supply business plan.
Lahendong Expansion Targets North Sulawesi Demand
The Lahendong expansion will support electricity demand in North Sulawesi, where geothermal energy already plays a major role. PGE said the additional Lahendong Units 7–8 and related binary unit capacity could raise its contribution to North Sulawesi’s electricity needs from about 30% to 35–40%.
The project also reflects the importance of geothermal power for regions with strong resource potential but limited flexibility in conventional power supply. Unlike solar and wind, geothermal can provide stable baseload electricity, making it valuable for grid reliability and long-term energy security.
Indonesia’s Geothermal Opportunity Remains Large
Indonesia has one of the world’s largest geothermal resource bases, supported by its volcanic geology. The Asian Development Bank has described the country as having around 29 GW of geothermal potential and the world’s second-largest installed geothermal capacity.
PGE is central to that opportunity. The company says it currently manages 15 geothermal working areas with 1,932 MW of installed capacity, including 727 MW operated directly and 1,205 MW under joint operating contracts. It also says its working areas account for about 70% of Indonesia’s installed geothermal capacity.
The latest $477.87 million funding support therefore strengthens more than three individual projects. It helps advance Indonesia’s effort to turn geothermal resources into reliable power, lower emissions and long-term energy security.
Sources used: Pertamina Geothermal Energy / ThinkGeoEnergy / Asian Development Bank
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