ADB grants US$180 million loan to boost Indonesia geothermal

The Asian Development Bank (ADB) on 31 October 2025 approved a US$180 million (≈Rp2.96 trillion) loan to PT Geo Dipa Energi, a state‑owned power company, to expand Indonesia’s geothermal power capacity. The loan represents a second tranche of financing for the geothermal project.

The financing will fund two 55 MW geothermal units in Java that will provide clean base‑load electricity and are expected to cut CO₂ emissions by more than 550 000 tonnes annually. The project builds on ADB’s earlier support, including a US$10 million grant in 2023 for advanced technology at the Patuha plant.

The investment advances Indonesia’s clean‑energy objectives and addresses high costs and exploration risks associated with geothermal development. Increased renewable capacity will strengthen the role of clean energy in the national grid.