Pertamina Geothermal gets $75M non-cash loan facility

Pertamina Geothermal Energy (PGE), a subsidiary of PT Pertamina (Persero), has secured a $75 million non-cash loan facility from a consortium of financial institutions to support its ongoing geothermal energy projects in Indonesia. The facility, which is structured as a non-cash loan, will be used to finance the development and expansion of PGE’s geothermal assets, aligning with Indonesia’s broader renewable energy goals [1].

The loan is part of a strategic initiative to enhance the country’s energy mix by increasing the share of renewable energy sources. PGE, which operates several geothermal plants across Indonesia, has been a key player in the nation’s efforts to reduce reliance on fossil fuels and meet international climate commitments.

The non-cash nature of the loan implies that the funding will be tied to specific project milestones and operational performance metrics, ensuring alignment between financial support and project delivery. This approach is intended to mitigate risk for both the borrower and the lenders while promoting sustainable development.

The announcement underscores continued international confidence in Indonesia’s geothermal sector and its potential to contribute significantly to the country’s energy security and environmental sustainability objectives.