ASIATODAY.ID, JAKARTA — Japan’s financial sector is strengthening its role in Indonesia’s clean energy transformation after PT Pertamina Geothermal Energy Tbk (PGE) secured a financing facility of up to US$75 million from Bank Mizuho Indonesia to accelerate geothermal development.
The agreement marks a new milestone in Indonesia-Japan cooperation in renewable energy, supporting efforts to expand sustainable power infrastructure in Southeast Asia’s largest economy.
Signed through a Trade Facility Agreement in Jakarta, the financing facility will provide greater flexibility for PGE’s operations and support the development of future geothermal projects.
The facility is structured on a clean basis without collateral, reflecting Mizuho Indonesia’s confidence in PGE’s financial strength, operational performance, and long-term growth prospects.
PGE Finance Director Fransetya Hasudungan Hutabarat said the partnership would strengthen the company’s financing capacity while supporting its geothermal expansion strategy.
“This facility will support operational needs and the development of PGE projects while becoming a foundation for a long-term partnership,” Fransetya said.
The financing package includes several instruments, including bank guarantees, standby letters of credit (SBLC), import letters of credit (L/C), account payable financing (APF), and revolving loan facilities.
Japan-Indonesia Partnership Drives Clean Energy Transition
Bank Mizuho Indonesia said the cooperation reflects its commitment to supporting Indonesia’s renewable energy development and strengthening long-term collaboration with PGE.
The partnership comes as countries across Asia accelerate investment in clean energy to improve energy security, reduce carbon emissions, and build sustainable economic growth.
Indonesia has placed renewable energy at the center of its long-term development strategy as the country seeks to achieve its Net Zero Emission (NZE) target while reducing dependence on fossil fuels.
Geothermal Becomes Key Pillar of Indonesia’s Energy Strategy
PGE is targeting independently managed geothermal capacity of 1 gigawatt (GW) by 2028, with plans to expand further to 1.8 GW by 2034.
The expansion supports Indonesia’s ambition to become a major renewable energy hub in Asia by utilizing its vast geothermal resources.
Located along the Pacific Ring of Fire, Indonesia possesses one of the world’s largest geothermal potentials. The resource offers a strategic advantage for the country’s transition toward reliable and low-carbon electricity.
However, significant portions of Indonesia’s geothermal potential remain undeveloped, creating opportunities for further investment and international cooperation.
Global Confidence in Indonesia’s Green Energy Future
The latest financing agreement highlights growing international confidence in Indonesia’s renewable energy sector.
For Indonesia, geothermal power is not only an environmental solution but also a strategic asset to strengthen energy resilience, support industrial growth, and attract global investment.
As Asia moves toward a lower-carbon future, Indonesia’s geothermal expansion could play a critical role in shaping the region’s clean energy landscape. (AT Network)
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