Active Geothermal Investment in Indonesia: Who Owns Ormat Technologies?
Jakarta – Global geothermal company Ormat Technologies is increasing its investment in Indonesia in tandem with the strengthening of renewable energy projects domestically, including the management of the Telaga Ranu Geothermal Working Area (WKP) with a capacity of 40 MW in West Halmahera, North Maluku.
This assignment is based on the Decision of the Minister of Energy and Mineral Resources Number 8.K/EK.04/MEM.E/2026, as part of the government’s target of achieving net zero emissions by 2060 through the development of clean energy based on geothermal power.
Riki Ibrahim, a senior lecturer in Renewable Energy at Darma Persada University, believes the public should observe developments in the geothermal industry objectively.
“Ormat’s investment is increasing; the geothermal industry is becoming more innovative and competitive,” he said in a statement cited on Sunday (1 March 2026).
The corporate structure was simplified in 2015 after Ormat Technologies acquired its own parent company.
A significant change occurred in May 2017 when ORIX Corporation acquired the combined shares of Ormat’s two largest shareholders, valued at 627 million US dollars or approximately 9.78 trillion rupiah (at an exchange rate of 15,600 rupiah per US dollar).
However, by 2026, ORIX’s ownership had shrunk to approximately 0.62 percent to 4.92 percent. The largest shareholding is now held by two global investment institutions from the United States, namely BlackRock and Vanguard.
BlackRock is recorded as holding approximately 11.47 percent to 14.67 percent of shares, whilst Vanguard holds approximately 9.07 percent to 9.99 percent. Overall, 95.49 percent of Ormat’s shares are now controlled by global financial institutions.
In Indonesia, PT Ormat Geothermal Indonesia (OGI) is involved in a number of geothermal projects such as Sarulla with a capacity of 330 MW, which began operations in 2017, as well as the Gunung Salak and Ijen projects with capacities of 15 MW and 35 MW respectively, which became operational in 2025.
In addition to serving as an ORC technology provider, Ormat also plays a role as a geothermal developer in Indonesia, demonstrating a commitment to long-term investment in the national renewable energy sector.
Riki believes that in the future, the establishment of an Ormat manufacturing facility in Indonesia should be encouraged to increase investment and technology transfer in the geothermal sector.
According to him, this measure has the potential to increase the domestic component level (TKDN) and reduce technology costs to make them more competitive compared with flash condensing technology in the development of geothermal power plants in Indonesia.
As an illustration of how Ormat is expanding its business operations in Indonesia, cooperation with domestic partners continued throughout 2025.