ADB inks $300m loan to boost Indonesia's geothermal capacity

It will support the construction and commissioning of two geothermal plants in Java.

The Asian Development Bank (ADB) has approved a $300m loan to help PT Geo Dipa Energi (GDE) expand its geothermal power generation capacity by 110MW in Java. ADB will also manage a $35m loan from the Clean Technology Fund for the project.

Despite having the world’s largest geothermal potential, the development of geothermal power in Indonesia remains slow because the exploration phase is costly, lengthy, and highly risky.

The Geothermal Power Generation Project will support the construction and commissioning of two geothermal plants at Dieng in Central Java and Patuha in West Java by GDE. It will boost GDE’s capacity to plan and execute projects and undertake government-supported drilling, which aims to attract much-needed private sector investment to develop new geothermal areas.

“The project, recognized as a National Strategic Project by the government, will provide environmentally friendly base-load electricity to the Java–Bali electricity grid, reducing CO2 emissions by more than 700,000 tons per year,” said GDE president director Riki Ibrahim.