State-owned oil and gas holding giant Pertamina is planning to issue its maiden green bonds within the coming year to finance its geothermal business.

Pertamina is the second Indonesian state-owned energy firm to unveil its plan to issue a sustainable finance instrument after the state electricity firm (PLN), respectively the fourth and first largest state-owned enterprise by assets.

Finance director Emma Sri Martini said Thursday that the bonds would help expand Pertamina’s green energy business to contribute between 10 percent and 15 percent of to total revenue within five years, compared to the current figure of under 5 percent.

“We realize that the sunset for fossil fuels will happen in 30 to 40 years do...