Diverse Financial Performance Among Renewable Energy Emitters in Indonesia: A Sector Analysis

In early 2025, Indonesian renewable energy companies reported mixed financial outcomes, yet the sector's future remains bright. PT Barito Renewables Energy Tbk (BREN) distinguished itself with a 3.44% year-on-year revenue increase, reaching $300.07 million, and a net profit rise of 12.98% to $65.47 million. CEO Hendra Soetjipto Tan credited this success to enhanced geothermal operations at the PLTP Darajat project and contributions from the Salak Binary project, coupled with effective cost management strategies. Analysts remain optimistic about the sector's growth potential.

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Published Aug 6, 2025

GEOTHERMAL

In the first half of 2025, several Indonesian renewable energy companies reported varied financial results, prompting analysts to highlight the promising future potential of the sector. PT Barito Renewables Energy Tbk (BREN) showcased a robust performance with a 3.44% year-on-year (YoY) revenue increase to $300.07 million and a net profit surge of 12.98% YoY to $65.47 million. CEO Hendra Soetjipto Tan attributed this growth to improved geothermal operations at the PLTP Darajat project and additional contributions from the Salak Binary project, alongside disciplined cost management.

Conversely, PT Pertamina Geothermal Energy Tbk (PGEO) experienced a net profit decline of 28.73% YoY to $68.96 million, despite a slight revenue growth of 0.53% YoY to $204.85 million. Financial Director Yurizki Rio cited challenges from global geopolitical and economic conditions as factors impacting project financing and operational costs, although he emphasized the company's maintained operational efficiency with an EBITDA margin exceeding 80%.

PT Arkora Hydro Tbk (ARKO) reported a significant revenue increase of 42.06% YoY to IDR 142.53 billion, with a net profit rise of 20.08% YoY to IDR 36.89 billion. In contrast, PT Kencana Energi Lestari Tbk (KEEN) faced a revenue decline of 16.05% YoY to $18.99 million and a net profit drop of 16.50% YoY to $8.25 million.

Analysts from Korea Investment and Sekuritas Indonesia (KISI) noted that the disparities in financial outcomes reflect differences in project composition and scale. Moving into the second half of 2025, the recovery of the national economy and increased demand for electricity, particularly from green sources, are anticipated to drive improvements in the financial performance of these energy emitters.

In summary, the renewable energy sector in Indonesia is characterized by a mix of performance metrics, with companies like BREN positioned favorably for future growth, while others face challenges that require strategic financial management.