According to ADB’s press release received in Jakarta on Friday, the financing will be used to complete the construction and operational testing of two geothermal power units on Java Island, each with a capacity of 55 megawatts.
ADB Country Director for Indonesia Jiro Tominaga said the project will provide environmentally friendly baseload electricity to the Java-Bali grid and is expected to reduce carbon emissions by more than 550,000 tons of CO2 annually.
“We are committed to continuing close collaboration to enhance Indonesia’s geothermal capacity and accelerate the transition toward a cleaner and more resilient energy future,” Tominaga said.
He added that Geo Dipa plays a vital role as a catalyst in advancing national geothermal development.
Tominaga noted that Indonesia holds the world’s largest geothermal potential at 29 gigawatts, with an installed capacity of 2.1 gigawatts - second largest globally.
However, geothermal development in the country still faces challenges such as high costs, long project durations, and significant exploration risks.
Launched in 2020, the project not only supports exploration and power generation but also strengthens Geo Dipa’s capacity in project planning, implementation, and government-supported drilling to attract private investment.
Previously, in 2023, ADB processed the first additional financing for the project - a US$10 million grant from the Japan Fund for the Joint Crediting Mechanism (JFJCM) - to install advanced technology at the Patuha Unit 2 power plant.
ADB is multilateral development bank established in 1966 and owned by 69 member countries, including 50 from the Asia-Pacific region.
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Reporter: Shofi Ayudiana
Editor: Primayanti
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