JAKARTA – PT Pertamina Geothermal Energy Tbk (PGEO), Pertamina’s geothermal energy arm, recorded a 14.2% year-on-year decline in net profit to USD 137.7 million by the end of 2025.

This came even as PGEO’s revenue still grew 6.3% to USD 432.7 million over the same period, supported by sales to PT PLN (Persero) and its subsidiary, PT PLN Indonesia Power.

“The situation was also supported by operational performance which recorded the highest production in the company’s history, or an all-time high, with production rising 5.6% in 2025,” PGEO finance director Yurizki Rio said in a statement received by IDNFinancials last week (8/3).

According to the company’s financial report, sales growth was recorded across all PGEO operational working areas, particularly at the Lumut Balai site, which posted a 48.5% increase in revenue.

Despite solid operational performance and top-line growth, cost of revenue throughout 2025 surged 19.8% to USD 199.7 million. General expenses also increased 3.4% to USD 30.7 million.

Notably, two cost components that rose significantly within those expenses were wages and allowances, as well as labour and professional services.

These expanding costs weighed on margins, with the gross profit margin falling significantly from 59% to 53.8% in 2025, while the net profit margin declined from 39.4% to 31.8%.

At present, PGE manages 15 geothermal working areas with installed capacity of 1,932 megawatts (MW), consisting of 727 MW directly operated and managed by the company, and 1,205 MW managed under joint operation contracts.

According to Yurizki, PGEO is currently investing in “quick win” projects to increase the company’s geothermal capacity and production.

“In the long term, the company is targeting installed capacity of up to 3 gigawatts (GW), identified across the 15 geothermal working areas under its management,” he added.

According to the company, several key projects to reach the target include the development of Lumut Balai Units 3 and 4 (2×55 MW), Hululais Units 1 and 2 (110 MW), as well as Lahendong Units 7 and 8 (2×20 MW) and a Binary Unit (10 MW).

PGEO is also developing several co-generation projects with a combined capacity of 230 MW. (ZH)