The Asian Development Bank (ADB) has approved a $180 million loan as the second additional financing to support PT Geo Dipa Energy (GDE), a state-owned Indonesian company, in expanding the nation’s geothermal electricity generation capacity. The Geothermal Power Generation Project involves constructing and commissioning two 55-megawatt geothermal plants on Java Island. These facilities will supply clean, reliable base-load electricity to the Java–Bali grid while reducing carbon emissions by more than 550,000 tons annually. The latest financing will help cover increased project costs and ensure continued progress toward Indonesia’s clean energy and climate objectives.
ADB Country Director for Indonesia, Jiro Tominaga, reaffirmed the bank’s commitment to supporting Indonesia’s sustainable energy transition. He emphasized GDE’s catalytic role in advancing geothermal development and expressed optimism about continued collaboration to expand Indonesia’s geothermal capacity and accelerate its move toward a greener and more resilient energy future.
Although Indonesia possesses the world’s largest geothermal potential—estimated at 29 gigawatts—and the second-largest installed capacity at 2.1 gigawatts, progress has been slow due to high costs, lengthy project timelines, and exploration risks. Since its approval in 2020, the ADB-supported project has assisted GDE in exploration, development, and power generation activities while strengthening the company’s project management capabilities and supporting government-led drilling programs aimed at attracting private sector investment.
GDE also prioritizes community development through initiatives that support women’s economic empowerment. Funds are allocated for women-led small enterprises and educational scholarships, and gender-sensitive approaches are integrated into the company’s operations to promote gender balance among staff and contractors.
In 2023, ADB approved the project’s first additional financing—a $10 million grant from the Japan Fund for the Joint Crediting Mechanism (JFJCM)—to introduce advanced technology at the Patuha Unit 2 geothermal plant.
As a leading multilateral development institution, ADB continues to promote inclusive, resilient, and sustainable growth across Asia and the Pacific. Since its establishment in 1966, the bank has worked with its 69 member countries to deliver transformative infrastructure, financial solutions, and partnerships that support equitable development and climate resilience in the region.
