In the first half of 2025, Pertamina NRE expansion gained remarkable momentum—both at home and abroad. Boasting growing capacity in geothermal and solar power, robust financial results, and strategic overseas investments, Pertamina New & Renewable Energy is setting a compelling trajectory. This article explores the operational, financial, and strategic dimensions of Pertamina NRE expansion, demonstrating how it paves the way for Indonesia’s leadership in regional clean energy development.

Rapid Operational Growth and Capacity Expansion

At the heart of Pertamina NRE expansion lies a notable increase in energy generation capacity. As of mid-2025, the company had achieved a total installed capacity of 2,842.10 MW in renewable energy. Production reached approximately 4.22 million megawatt-hours, representing over 55 percent of its mid-year target. Efficiency remained high, with an outage rate of just 0.12 percent—a testament to well-managed operations.

Contributions from geothermal assets are substantial. PT Pertamina Geothermal Energy, a key subsidiary, operates geothermal power plants totaling 727 MW. Alongside this, solar assets—mainly situated across Pertamina facilities such as refineries, oil fields, and fueling stations—topped 345.2 MWp. These dual pillars underscore the breadth of Pertamina NRE expansion across both heat-driven and solar power generation technologies.

Sound Financial Performance Fueling Expansion

Financially, Pertamina NRE expansion is backed by solid revenues and investment. By June 2025, the company booked revenues of approximately USD 209.1 million and net income of USD 52 million. Capital deployment was equally strong, with investments totaling around USD 153.8 million in just six months. These figures highlight how operational gains are reinforcing the financial capacity needed for continued expansion.

Behind these numbers lies a careful balance of reinvestment and strategic growth. By allocating resources into both domestic infrastructure and external ventures, Pertamina NRE expansion is becoming increasingly sustainable—anchored by consistent performance and disciplined capital allocation.

International Reach Through Strategic Acquisition

A standout element of Pertamina NRE expansion is the acquisition of a 20 percent stake in Citicore Renewable Energy Corporation (CREC), a Philippine-based solar energy developer. Valued at USD 120 million, this share purchase marks Pertamina NRE’s largest cross-border investment to date, signaling its ambition beyond Indonesian borders.

This strategic move opens doors for collaborative development in solar and wind projects across Indonesia and the Philippines. The partnership also includes frameworks for establishing a solar panel manufacturing line, investing in battery energy storage systems, and engaging in carbon credit generation and trade.

By seizing this opportunity, Pertamina NRE expansion demonstrates its readiness to share knowledge, technology, and market access, fostering regional integration in clean energy innovation.

Strategic Benefits and Future Opportunities

The multi-faceted Pertamina NRE expansion yields several strategic advantages:

• Diversified renewable portfolio: Geothermal strength complemented by solar presence ensures a balanced energy mix.
• Strong operational performance: High asset utilization and low downtime enhance value.
• Financial stability: Profitable operations and robust investment capacity provide a foundation for growth.
• Cross-border synergies: The CREC stake enables technological collaboration, capacity-building, and regional project scaling.
• Alignment with national goals: Supporting Indonesia’s ambition for 60 percent renewable energy by 2034, while enhancing Southeast Asia’s energy ecosystem.

This forward-looking portfolio positions Pertamina NRE as a frontrunner in sustainable energy development—both domestically and regionally.

Challenges and Strategic Considerations Ahead

Despite strong momentum, the Pertamina NRE expansion journey must navigate several hurdles:

1. Regulatory alignment and incentives across countries.
2. Operational coordination between Indonesian and Philippine clean energy projects.
3. Carbon credit and storage infrastructure development, which require policy clarity.
4. Maintaining financial discipline as projects scale rapidly.
5. Managing geopolitical and market risks inherent in cross-border investments.

Successfully addressing these dimensions will determine the viability and impact of Pertamina NRE expansion in shaping the regional renewable landscape.

Conclusion

Pertamina NRE expansion in early 2025 reflects a powerful combination of domestic strength and international ambition. With robust capacity growth, strong financial footing, and a bold strategic partnership with CREC in the Philippines, Pertamina NRE is advancing beyond traditional boundaries. As Indonesia accelerates its renewable transition, Pertamina NRE expansion not only cements national leadership—it also sets the stage for Southeast Asian collaboration in the clean energy era.