December 4, 2025 | 03:03 pm
TEMPO.CO, Jakarta - Four geothermal projects operated by PT Pertamina Geothermal Energy (PGE) are listed in the 2025-2029 Ministry of National Development Planning /National Development Planning Agency (Bappenas) 'Blue Book.' These four projects could potenhttps://en.tempo.co/tag/geothermaltially receive international funding of up to US$613 million or around Rp10 trillion.
The four projects include the Lumut Geothermal Plant Unit 3 and 4, the Gunung Tiga/Ulubelu Geothermal Plant Extension I, and the Lahendong Geothermal Plant Unit 7-8 & Binary. The projects generate an estimated US$1.09 billion in value, as well as adding a low-emission electricity capacity of 215 MW.
"Not only will the development of these projects boost renewable energy supplies, but there will be a dual impact for the communities through job creation and local economy improvements," said Edwil Suzandi, in a written statement on Thursday, December 4, 2025.
Projected to start phased operation from 2029 to 2032, Edwil said these projects mark a significant milestone in the national energy transition effort.
He mentioned that the foreign funding potential may come from multilateral institutions such as the World Bank, the Asian Development Bank (ADB), JBIC, or JICA through an indicative concessional loan scheme.
Edwil explained that each project has a strategic function. For example, the Lumut Geothermal Plant Units 3 and 4 in South Sumatra could strengthen the geothermal cluster in the region with respective investments of US$305 million and US$290 million.
Meanwhile, the Gunung Tiga/Ulubelu Geothermal Plant Extension I, worth US$227 million, will increase the supply of clean electricity in Lampung using two-phase binary technology. On the other hand, the Lahendong Unit 7-8 & Binary project, valued at US$274 millio,n will expand geothermal development in North Sulawesi.
Edwil explained that the financing scheme using Subsidiary Loan Agreement (SLA) will strengthen the economic feasibility of the projects. With a low-cost loan mechanism, the project's Internal Rate of Return (IRR) can increase by 1-3 percent, thereby increasing the long-term investment value.
Having entered the Blue Book, PGE is preparing to enter the negotiation stage for financing with multilateral institutions, including the determination of tenor, interest rates, financing structure, as well as technical and environmental requirements. The next step is the preparation of readiness criteria to enter the Green Book.
"This stage opens access to full international funding. This process is carried out in collaboration with Pertamina, Bappenas, and the Ministry of Finance," he said.
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