Entering The Blue Book, Four PGEO Projects Receive Funding Of 613 Million US Dollars

JAKARTA - A total of four geothermal projects belonging to PT Pertamina Geothermal Energy Tbk (PGEO) are included in the 2025 '2029 Blue Book by the Ministry of National Development Planning/Bappenas.

With the entry of this project, PGEO has the potential to receive indicative funding of US$613 million for the development of geothermal projects.

PGE Exploration & Development Director Edwil Suzandi detailed that the four PGE projects included in the Blue Book 2025-2029 included Lumut Balai Unit 3, Lumut Balai Unit 4, Gunung Tiga / Ulubelu Extension I, and Lahendong Unit 7 8 & Binary.

The total investment value for these four projects reached more than 1.09 billion US dollars.

The realization of these projects is projected to add 215 MW of low emission electric capacity, which is planned to operate in stages from 2029 to 2032.

"This reinforces the commitment to developing the Company's geothermal 3 GW potential," said Edwil, Thursday, December 4.

He further explained that these four projects have the potential to obtain foreign funding through an additional concern loan scheme with a value of up to 613 million US dollars, which has the potential to come from a number of multilateral institutions such as the World Bank, ADB, JBIC, or JICA.

"The development of these projects not only increases the national renewable energy mix, but also provides multiplier effects for people around the operating area, ranging from creating new jobs to growing local economic activity," he explained.

Furthermore, said Edwil, each project has different strategic characteristics and roles in strengthening the national geothermal portfolio. Meanwhile, the capital expenditure or PLTP Lumut Balai Unit 3 capex reached 305 million US dollars and the Lumut Balai Unit of 290 million US dollars will strengthen PGE's geothermal development cluster in South Sumatra.

Meanwhile, Mount Tiga/Ulubelu Extension I with a capex of 227 million US dollars will increase the supply of clean energy in Lampung Province through the application of two-phase binary technology which offers higher efficiency.

In North Sulawesi, the Lahendong Unit 78 & Binary project with a capital expenditure of US$274 million expanded geothermal development in one of the regions with the largest geothermal potential in Indonesia.

Edwil also said that through the Loan Agreement (SLA) Subsidy scheme, namely the channel loan mechanism from one of the multilateral institutions to the Government of Indonesia which offers low-cost and long-term financing, the feasibility of the project economy will become stronger.

Skema pembiayaan ini berpotensi meningkatkan Internal Rate of Return (IRR) proyek sebesar 1–3 persen sehingga memberikan nilai tambah bagi perusahaan sekaligus memastikan keberlanjutan investasi jangka panjang.

"Pada tahap selanjutnya, PGE akan memasuki proses negosiasi dengan lembaga multilateral untuk memperoleh term pendanaan paling optimal termasuk struktur pembiayaan, tingkat suku bunga, tenor, serta persyaratan teknis dan lingkungan," tandas dia.

This financing scheme has the potential to increase the project's Internal Rate of Return (IRR) by 1 3 percent so as to provide added value for the company while ensuring long-term investment sustainability.

"In the next stage, PGE will enter the negotiation process with multilateral institutions to obtain the most optimal funding terms including financing structures, interest rates, tenors, as well as technical and environmental requirements," he said.