Pertamina partners with Japanese insurance company to support geothermal projects

Signing of MOU between Pertamina and NEXI. In the photo are Emma Sri Martini, CFO of Pertamina, Ken Saito, Minister of Economy, Trade and Industry, Atsuo Kuroda, Chairman and CEO of NEXI (source: METI)

State-owned geothermal developer and operator PT Pertamina Geothermal Energy (PGE) has signed a strategic partnership agreement with Japanese government-owned insurance company Nippon Export and Investment Insurance (NEXI) that is expected to help attract more investment into the geothermal sector of Indonesia.

Through the MoU, PGE and NEXI have agreed to cooperate in strengthening and supporting the development of geothermal energy projects in Indonesia through the use of loan insurance services from NEXI. This will help reduce risks in funding large-scale energy projects, thus helping to open up opportunities for geothermal development. One of the opportunities highlighted in the agreement is the financing insurance guarantee for the Lahendong 7 and 8 project.

“The integration of business insurance and credit facilities from NEXI provides protection so that we can obtain financing with lighter requirements,” commented PT Pertamina (Persero) Finance Director Emma Sri Martini.

“This not only reduces financial risk, but also strengthens investor confidence to invest in various energy transition initiatives. Collaboration with NEXI is a manifestation of our proactive approach in ensuring the financial strength of Pertamina projects while moving towards a sustainable energy future.”

“This collaboration is in line with our commitment to providing sustainable energy solutions. By utilizing NEXI’s loan insurance solution for decarbonization projects, PGE encourages innovation in geothermal energy development while supporting the decarbonization vision of the Asia Zero Emissions Community (AZEC),” added Julfi Hadi, PGE President Director. Julfi signed the agreement along with NEXI Senior Managing Executive Officer Kazuki Hondo.

NEXI has been actively providing insurance solutions for various infrastructure projects, renewable energy development, and decarbonization projects. The signing of the MoU with NEXI is a significant step to make investment in PGE’s geothermal development projects more attractive.

The collaboration is also a step in strengthening the relations between Indonesia and Japan. It opens up new investment opportunities un the renewable energy sector under the umbrella of the AZED, an international collaboration platform for accelerating decarbonization in Asia. This investment opportunity includes the application of Japanese geothermal technology that can optimize geothermal energy production in Indonesia.

Source: Kontan.co.id and NEXI