ASIATODAY.ID, JAKARTA — Indonesia’s clean energy transition is gaining new momentum as a US$300 million financing facility accelerates the development of strategic geothermal projects in Sumatra and Maluku, strengthening the country’s ambition to expand renewable power capacity and build a more sustainable energy future.
PT Barito Renewables Energy Tbk (BREN), through its Singapore-based subsidiary Star Energy Group Holdings Pte. Ltd. (SEGHPL), has secured the financing facility from Bangkok Bank to support the development of two major geothermal projects — Suoh Sekincau in Lampung, Sumatra, and Hamiding in Maluku.
The financing package consists of two facilities: Facility A worth US$105 million and Facility B valued at US$195 million.
Facility A will support the pre-construction phase of the Suoh Sekincau geothermal project through capital injection into PT Star Energy Suoh Sekincau. Meanwhile, Facility B will finance construction and development activities for both geothermal projects.
Around US$90 million from Facility B will be allocated to the Hamiding geothermal project through PT Star Energy Geothermal Indonesia, while the remaining funds may be utilized to support other renewable energy projects within the group.
Geothermal Becomes Strategic Pillar of Clean Energy Transition
The financing marks a significant step in Indonesia’s efforts to accelerate the transition toward cleaner and more resilient energy systems.
Located along the Pacific Ring of Fire, Indonesia possesses one of the world’s largest geothermal resources. The country’s geothermal potential is considered a strategic advantage as global economies seek reliable renewable energy sources to reduce carbon emissions and strengthen energy security.
Unlike intermittent renewable sources, geothermal power provides stable baseload electricity, making it an important component of Indonesia’s future energy mix.
The development of Suoh Sekincau and Hamiding is expected to contribute to expanding renewable electricity supply while supporting Indonesia’s long-term climate and sustainability goals.
Global Investment Confidence in Indonesia’s Green Energy Sector
The US$300 million financing reflects growing investor confidence in Indonesia’s renewable energy sector amid increasing global demand for sustainable infrastructure.
BREN said the facility will strengthen the company’s financial capacity, improve liquidity management, and support capital expenditure requirements for ongoing and future geothermal developments.
“The facility will strengthen the group’s financial position and funding capacity to support sustainable growth in geothermal and electricity businesses,” BREN management said.
The five-year financing facility is supported by share pledges across Star Energy entities and a US dollar-denominated debt service reserve account maintained at Bangkok Bank.
Indonesia’s Ambition to Become a Geothermal Powerhouse
With vast geothermal resources spread across the archipelago, Indonesia has the potential to emerge as one of Asia’s leading geothermal energy hubs.
The expansion of geothermal projects represents more than an investment in electricity generation — it is part of Indonesia’s broader strategy to develop low-carbon infrastructure, attract green investment, and secure a sustainable energy future.
As countries across Asia accelerate their clean energy transition, Indonesia’s geothermal development could become a key driver in shaping the region’s renewable energy landscape. (AT Network)
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