Energy and Mineral Resources Minister Bahlil Lahadalia has stated\nthat geothermal development is a crucial part of supporting the\ngovernment\u2019s energy self-sufficiency and downstreaming agenda, in line\nwith the Asta Cita vision. Accordingly, the Ministry of Energy and\nMineral Resources has set four main priorities: increasing energy\nsupply, expanding energy access and service coverage, accelerating the\nenergy transition, and speeding up downstreaming.<\/p>\n
Indonesia currently ranks second in the world in installed geothermal\ncapacity, Bahlil said while opening the 12th Indonesia International\nGeothermal Convention & Exhibition at the Jakarta Convention Centre\non Wednesday. He noted that Indonesia\u2019s total geothermal potential\nreaches 23,202.77 MW, while installed capacity stands at around 2,776.39\nMW. This means only about 11.6 per cent of the potential has been\nutilised, leaving around 88.4 per cent untapped.<\/p>\n
Bahlil explained that Indonesia\u2019s geothermal potential is spread\nacross various regions. Sumatra has potential of around 9,441.10 MW,\nJava around 7,587.80 MW, Sulawesi around 3,006 MW, and Nusa Tenggara\naround 1,272.87 MW. Kalimantan, Bali, Maluku, and Papua also have\ngeothermal potential but do not yet have installed capacity, he\nadded.<\/p>\n
Through the 2025\u20132034 Electricity Supply Business Plan, the\ngovernment is pursuing a vision of making Indonesia the world\u2019s largest\ngeothermal energy producer by 2030. Bahlil said geothermal development\nis directed not only at supporting the energy transition but also at\nstrengthening national energy security and independence.<\/p>\n
For this year, the government is preparing development at two\nPreliminary Survey and Exploration Assignment locations and four\nGeothermal Working Areas with total resources of around 131 MW,\nadditional capacity of around 185 MW, and projected investment value of\naround US$1.16 billion. Bahlil said the government is also preparing\nregulatory and investment catalysts to accelerate geothermal\ndevelopment, including revising Government Regulation No.\u00a07 of 2017 to\nsupport indirect geothermal utilisation and improve investment returns,\nas well as revising Presidential Regulation No.\u00a0112 of 2022 to\naccelerate new and renewable energy development.<\/p>\n
Geothermal development is being pushed towards a \u2018Beyond Geothermal\u2019\nor geothermal economy concept, namely optimising geothermal resources\nnot only for electricity generation, Bahlil said. One example is mineral\nextraction at the Dieng Project, with potential production of around\n2,190 tonnes of lithium per year and 8,000 tonnes of silica per year. In\nthis way, geothermal can also support the development of value-added\nminerals and the national downstreaming agenda.<\/p>\n
Bahlil noted that direct geothermal utilisation has already been\napplied in community economic activities. In Kamojang, geothermal energy\nis used for coffee drying, reducing the drying process to around three\nto four days. In Lahendong, geothermal energy is used in palm sugar\nprocessing as a replacement for conventional wood-fired methods, making\nit more environmentally friendly and saving more than 330 trees per\nyear.<\/p>\n
Bahlil added that geothermal development has delivered economic\nbenefits to the state and regions. Geothermal non-tax state revenue\nreached around Rp 2.46 trillion, or about 112 per cent of the Rp 2.19\ntrillion target, last year. Additionally, from 2014 to 2025, production\nbonuses distributed to producing regions reached around Rp 1.42\ntrillion.<\/p>\n
Bahlil said geothermal benefits are also directed to be felt directly\nby communities through programmes in education, health, people\u2019s\neconomy, environment and social affairs, as well as local job creation.\nOne example is an agricultural empowerment programme around geothermal\npower plants that produced around 14.4 tonnes of harvest, empowering\naround 90\u2013100 local workers each harvest season, with around 90 per cent\nof the workforce being women.<\/p>\n
At IIGCE 2026, Bahlil said the government handed over Geothermal\nPermits to state electricity company PT PLN for the Gunung Ungaran\nWorking Area and to PT Telaga Rano Geothermal for the Telaga Ranu\nWorking Area, as part of efforts to accelerate geothermal project\ndevelopment from the potential stage to the execution stage. The\ngovernment is also preparing to offer five Geothermal Working Areas and\nseven Preliminary Survey and Exploration Assignment areas in 2026 to\nincrease investment and expand geothermal exploration activities.<\/p>\n
Overall, the pipeline covers potential development of around 392 MW\nwith planned investment of around US$2.23 billion, he said. The five\nGeothermal Working Areas prepared for offer are Danau Ranau, Hamiding,\nSonggoriti, Oka Ile Ange, and Gunung Sirung, with total reserves of\naround 304 MW and planned capacity of around 145 MW. The planned\ncapacity consists of Danau Ranau 40 MW, Hamiding 50 MW, Songgoriti 40\nMW, Oka Ile Ange 10 MW, and Gunung Sirung 5 MW.<\/p>\n
In addition to the working areas, the government is preparing seven\nPreliminary Survey and Exploration Assignment prospect areas: Talamau\nand Simisiuh in West Sumatra, Srirejo in Lampung, Lili Seporaki in West\nSulawesi, Maranda Kawende in Central Sulawesi, Massepe Sulili in South\nSulawesi, and Banda Baru in Maluku. These seven areas have total\nresources of around 321 MW and total possible reserves of around 247\nMW.<\/p>\n
Through accelerated exploration, improved project economics,\nstrengthened regulation, and expanded investment, geothermal is expected\nto become one of the backbones of energy self-sufficiency as well as a\nnew source of economic growth for Indonesia, Bahlil said.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/bahlil-geothermal-development-key-to-indonesias-energy-self-sufficiency-1787122395", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }