ADB Reiterates Support for Advancing Geothermal Electricity Generation in Indonesia

The Asian Development Bank (ADB) has approved a $180 million loan to support PT Geo Dipa Energy (GDE) in furthering Indonesia's geothermal electricity generation. The Geothermal Power Generation Project focuses on constructing and commissioning two 55-megawatt geothermal plants in Java Island, providing environmentally friendly base-load electricity to the Java-Bali grid and reducing CO2 emissions by over 550,000 tons annually. The project aligns with Indonesia's clean energy and climate goals, and ADB is committed to partnering with the government to accelerate the country's sustainable energy transition.

Key Takeaways:

The ADB approved a $180 million loan as additional financing to support PT Geo Dipa Energy in advancing Indonesia's geothermal electricity generation.
The Geothermal Power Generation Project involves the construction and commissioning of two 55-megawatt geothermal plants in Java Island, which will provide environmentally friendly electricity to the Java-Bali grid.
The project is expected to reduce CO2 emissions by over 550,000 tons per year and aligns with Indonesia's clean energy and climate goals.
Despite having significant geothermal potential, Indonesia's development has been slow due to high exploration costs, long duration, and high risk.
ADB's support for the project demonstrates its commitment to partnering with the government to advance Indonesia's sustainable energy transition.
The project's community strategy prioritizes women's livelihoods through support for women-led small businesses and scholarships, promoting gender balance in staff and contractors.
In 2020, the project was approved, and in 2023, ADB processed a $10 million grant from the Japan Fund for the Joint Crediting Mechanism to incorporate advanced technology at the Patuha unit 2 power plant.

Statistics:

$180 million loan approved by ADB for financing PT Geo Dipa Energy's geothermal electricity generation project.
CO2 emissions reduction: over 550,000 tons per year.
Total geothermal potential in Indonesia: 29 gigawatts.
Installed geothermal capacity in Indonesia: 2.1 gigawatts.
Duration of geothermal exploration in Indonesia: long and high-risk.
ADB's multilateral development bank membership: 69 members, 50 from the region.

Sources:

"ADB Reiterates Support to Advancing Geothermal Electricity Generation in Indonesia"

+ M2 PressWIRE

+ October 31, 2025