Indonesian state-owned oil and gas producer Pertamina has bought a 20pc stake in Philippine firm Citicore Renewable Energy (CREC) as it looks to expend its presence in the renewables sector.

The Indonesian firm's renewable energy (RE) subsidiary, Pertamina NRE, paid $120mn for the stake in a deal signed on 19 June. This is Pertamina's first renewable energy investment in the Philippines.

CREC is one of the Philippines' leading renewable energy producers, generating about 287MW peak (MWp) of solar power across the country. The company has 25.7MW of hydropower and 362 MW of wind power projects under development.

CREC plans to jointly explore renewable energy investments in Indonesia with Pertamina NRE. The partnership "is a way to elevate our capability in RE development, as well as a big step in accelerating our clean energy goals," said Pertamina NRE chief executive John Anis.

The deal comes after the World Bank approved a $2.1bn blended finance package earlier this week to accelerate Indonesia's clean energy investments.

The partnership will help strengthen energy co-operation between the two countries, Philippine energy department assistant secretary Mylee Capongcol said

The Philippines and Indonesia signed an initial agreement for energy co-operation in 2024, highlighting their joint commitment to the energy transition.

"Both Indonesia and the Philippines share common energy concerns, being dependent on coal-fired power plants and seeking an orderly transition to cleaner technologies," Capongcol said.

By Angie Liew