Wedoany.com Report-Jun 28, PT Barito Renewables Energy Tbk (BREN), through its subsidiaries, has signed a loan facility agreement totaling USD 121.1 million to support capacity expansion in its geothermal operations at Salak and Darajat in West Java, Indonesia. This financial move aligns with the company’s long-term strategy to boost renewable energy production.
Darajat III geothermal plant, Indonesia
BREN Director and Corporate Secretary Agus Sandy Widyanto stated that the agreement involves three of the company’s subsidiaries: Star Energy Geothermal Pte. Ltd. (SEGPL), Star Energy Geothermal Netherlands BV (SEGN BV), and Star Energy Geothermal (Salak Darajat) BV (SEGSD BV). Under the loan structure, SEGPL and SEGN BV will access Facility A, totaling USD 96.1 million, while SEGSD BV will receive Facility B, valued at USD 25 million.
Sumitomo Mitsui Banking Corporation Singapore Branch (SMBC) and DBS Bank Ltd. are acting as the initial lenders and Green Loan Coordinators. The loan matures on 18 June 2030, five years from the date of signing. DBS Bank also serves multiple roles in the deal, including agent, collateral agent, and account bank.
Proceeds from the loan will be allocated to specific geothermal development projects. These include the retrofitting of Darajat Unit 3, which will raise its capacity from 122 MW to 129 MW, and the construction of a new 40 MW Salak Unit 7 geothermal power plant. These developments are part of Star Energy’s broader capacity expansion target of 102.6 MW, announced during the 2024 Indonesia International Geothermal Convention & Exhibition (IIGCE).
The additional 47 MW from the current financing round will contribute significantly to achieving this goal. Star Energy’s efforts demonstrate a continued commitment to enhancing Indonesia’s renewable energy infrastructure, particularly through geothermal resources. In addition to the Salak and Darajat sites, Star Energy operates the Wayang Windu geothermal field and holds development licenses for greenfield projects at Gunung Hamiding in North Maluku and Sekincau in Lampung.
The company’s investment supports the national target of increasing renewable energy contributions to the energy mix, particularly through the development of high-potential geothermal sources. This strategic move also reflects growing interest from international financial institutions in green energy initiatives within Southeast Asia.
By leveraging international financing and advanced technology, BREN and its subsidiaries aim to increase operational efficiency and output from their existing assets while expanding into new geothermal areas. The loan’s green structure also signals investor confidence in the sustainability and long-term viability of Indonesia’s geothermal sector.
With the successful execution of these projects, Star Energy will play a key role in supporting the country’s renewable energy ambitions while reinforcing its own position as a leading geothermal energy producer in the region.
