PT Pertamina Geothermal Energy (PGE), Indonesia’s geothermal power producer and a subsidiary of state-owned energy giant Pertamina, has signed an unsecured non-cash trade facility up to $75 million from Bank Mizuho Indonesia to support its geothermal operations and expansion projects.
The facility, structured as an uncommitted omnibus facility, includes bank guarantees, standby letters of credit, import letters of credit, accounts payable financing, and a revolving loan facility, according to PGE’s disclosure with the Indonesia Stock Exchange on Monday.
PGE said the clean-basis facility, which does not require any collateral, reflects Mizuho Bank Indonesia’s confidence in the state-owned geothermal producer’s risk profile and financial performance.
Chief financial officer Fransetya Hutabarat said the financing will broaden the company’s funding access while strengthening its financial flexibility.
“We appreciate the trust and support from Mizuho Bank Indonesia through this facility. It will support PGE’s operational needs and geothermal project development while laying the foundation for a mutually beneficial long-term partnership,” Hutabarat said. “We hope this collaboration will continue to grow and help accelerate Indonesia’s transition towards net-zero emissions.”
Heru Gautama Hatman, marketing director of PT Bank Mizuho Indonesia, said the agreement underscores the bank’s commitment to supporting Indonesia’s clean energy transition.
“We are grateful for the trust that PGE has placed in Bank Mizuho Indonesia. We hope this partnership will not only serve as a financing facility but also support PGE’s ambition to become a leading example of geothermal development, not only in Indonesia but globally,” he said.
PGE said the partnership further strengthens its green financing ecosystem, which already includes sustainable financing instruments and funding support from several international financial institutions. The company is targeting 1 GW of self-managed installed geothermal capacity by 2028, increasing to 1.8 GW by 2034.
In June, the company said three of its geothermal projects had secured up to $477.9 million in concessional financing from the Japan International Cooperation Agency (JICA) and the World Bank after being included in Indonesia’s 2026 Green Book of priority foreign-funded projects.
