Indonesian Political, Business & Finance News

Analyst views geothermal energy as potential to accelerate energy transition pace

| Source: ANTARA_ID Translated from Indonesian | Energy
Analyst views geothermal energy as potential to accelerate energy transition pace
Image: ANTARA_ID

Jakarta (ANTARA) - Ali Ahmudi Achyak, Executive Director of the Center for Energy Security Studies (CESS), assesses that geothermal power plants (PLTP) have the potential to accelerate Indonesia’s energy transition. “Geothermal energy can be a game changer, especially since Indonesia has one of the largest reserves in the world,” Ali stated in comments received in Jakarta on Friday. The government targets expanding new renewable energy (EBT) power plant capacity to 76% during 2025–2034 through PLN’s Electricity Supply Business Plan (RUPTL). Of the 42.1 GW total EBT capacity planned in the RUPTL, 5.2 GW comes from geothermal sources. Ali noted that in this scenario, geothermal is seen as a major contributor capable of maintaining the reliability of the electricity system while reducing carbon emissions. Ali added that there is a positive trend shown by Pertamina Geothermal Energy (PGE). “If this (business) performance is maintained and expanded, it is not impossible that the energy transition will proceed more aggressively,” Ali said. Amid global dynamics and the push towards decarbonisation, PGE’s success is cited by Ali as an example that Indonesia has a strong foundation to accelerate the energy transition. “With vast potential that has not yet been fully exploited, geothermal is not only an economic opportunity but also a long-term strategy towards sustainable energy independence,” he said. Additionally, PGE achieved the company’s all-time high green electricity production in 2025. Last year, PGE recorded total production of 5,095 gigawatt hours (GWh), up 5.55% from 2024 production of 4,827 GWh.

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