Pertamina needs $1b to develop geothermal projects

PT Pertamina Geothermal Energy (PGE), the unit of the state-owned oil and gas company PT Pertamina, needs around $1 billion to develop several geothermal projects in Indonesia until 2014, an official said Friday.

Abadi Poernomo, the president director of the company told reporters that several lenders such as Japan International Cooperation Agency and World Bank which offers soft loan around US$ 500 million.

Beside that German government is also offering a soft loan, he said.

The $1 billion funds are to finance the development of gothermal projects in Karaha (35 MW), Sungai Penuh (55 MW), Kotamobagu (40 MW), Hululais (110 MW), Lumutbalai (220 MW), Ulubelu (110 MW), the expansion of the 60-MW Lahendong capacity by 80 MW, and the expansion of the 200-MW Kamojang capacity by 60 MW.

PGE currently has 15 geothermal concessions across Indonesia, which produces 252 MW equivalent of electricity from Kamojang in West Java, Sibayak in North Sumatra and Lahendong in North Sulawesi. (Bernard)