JAKARTA \u2013 PT Pertamina Geothermal Energy Tbk (PGE) is targeting an\ninstalled geothermal power generation capacity of 1 gigawatt (GW) by\n2028, rising to 1.8 GW by 2038. PGE President Director Ahmad Yani said\nthe target forms part of efforts to support the government\u2019s aim of\nmaking Indonesia the world\u2019s largest geothermal electricity producer by\n2030.<\/p>\n
Ahmad said the company has prepared a development roadmap aligned\nwith the 2025-2034 Electricity Supply Business Plan (RUPTL), which\nallocates a substantial share to new and renewable energy, including\ngeothermal.<\/p>\n
\u201cPGE\u2019s installed capacity is currently around 727 megawatts. Our\ntarget is to become a company with 1 gigawatt of capacity by 2028 and\n1.8 gigawatts by 2038. The potential we are ready to develop is around 3\ngigawatts,\u201d Ahmad said during a presentation of the company\u2019s first-half\n2026 performance in Jakarta on Tuesday (4\/8\/2026).<\/p>\n
He said Indonesia holds around 40 percent of the world\u2019s geothermal\npotential, giving it a major opportunity to strengthen national energy\nsecurity through clean, sustainable domestic energy sources.<\/p>\n
Ahmad explained that the government has set around 5.2 GW of\ngeothermal development within the 2025-2034 RUPTL as part of a\ngeneration mix dominated by new renewable energy.<\/p>\n
Beyond increasing generation capacity, PGE has also begun developing\nbusinesses outside electricity sales to maximise the economic value of\ngeothermal resources. One project being prepared is the development of\ngreen hydrogen at the Ulubelu field in Lampung.<\/p>\n
PGE is targeting the pilot project to begin operations in November\n2026 with a production capacity of around 100 kilogrammes of green\nhydrogen per day. According to Ahmad, the project marks the first step\nin building a national hydrogen ecosystem before it is developed into a\ncommercial business in the coming years.<\/p>\n
\u201cWe see the green hydrogen market continuing to grow. This is an\nopportunity that must be seized because Indonesia has enormous\ngeothermal potential,\u201d he said.<\/p>\n
In addition to green hydrogen, PGE is developing green energy supply\nfor data centres (green data centres), direct use of geothermal heat,\nand FloW2Max technology, which has been marketed to six countries.<\/p>\n
He said this diversification is expected to become a new revenue\nstream that can strengthen the company\u2019s core geothermal business.<\/p>\n
This year marks an important moment for Indonesia\u2019s geothermal\nindustry as it marks 100 years since the drilling of the first\ngeothermal well at Kamojang, Garut. The Kamojang-3 well, drilled in\n1926, still produces steam today and stands as a historic milestone in\nnational geothermal development.<\/p>\n
PGE views the centenary of geothermal energy not merely as a\nhistorical record, but also as an opportunity to demonstrate Indonesia\u2019s\nleadership in geothermal energy development at the global level.<\/p>\n
In his presentation, Ahmad Yani noted that geothermal has advantages\nover other renewable energy sources because it can supply electricity\ncontinuously with a capacity factor above 90 percent.<\/p>\n
As a baseload power source, geothermal is considered capable of\ncomplementing solar power, whose output depends on weather\nconditions.<\/p>\n
\u201cGeothermal can operate 24 hours a day, seven days a week. That is\nwhy geothermal is a very important pillar supporting the development of\nother renewable energy,\u201d he said.<\/p>\n
In terms of sustainability, Ahmad Yani said geothermal development\ndelivers three benefits at once: strengthening energy security,\nprotecting the environment through clean energy provision, and improving\nthe welfare of communities around operational areas.<\/p>\n
He cited PGE\u2019s operations at Kamojang, which have run for more than\nfour decades and earned 15 Company Performance Rating Programme (PROPER)\nawards as recognition for environmental management and community\nempowerment.<\/p>\n
Meanwhile, operationally, PGE recorded positive performance\nthroughout the first half of 2026. Ahmad Yani said electricity\nproduction reached around 5,530 gigawatt-hours (GWh) with a plant\navailability rate of 99.15 percent.<\/p>\n
He said the company has also maintained strong financial fundamentals\nthrough operational efficiency and competitive financing costs, leaving\nit ready to support the development of new projects, including projects\nfinanced through green bond schemes.<\/p>\n
He added that a number of expansion projects that already have power\npurchase agreements (PPA) are continuing, to accelerate the increase in\ngeneration capacity towards the company\u2019s target of becoming a global\ngeothermal centre of excellence.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/pge-targets-1-gw-capacity-by-2028-aims-to-become-worlds-largest-geothermal-player-1785891119", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }