Bahlil urges geothermal developers to promptly realise PLTP projects
Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia has urged geothermal power plant (PLTP) developers that have already secured concessions to promptly realise their projects.
“For businesspeople who have obtained concessions, they must also move quickly. Do not hold onto the concessions. Holding onto them also slows things down,” Bahlil said at The 12th Indonesia International Geothermal Convention & Exhibition (IIGCE) 2026 held in Jakarta on Wednesday.
The government has positioned geothermal development as part of efforts to strengthen energy sovereignty.
Based on data from the Ministry of Energy and Mineral Resources (ESDM), Indonesia’s total geothermal potential reaches 23,202.77 megawatts (MW), while installed capacity stands at 2,776.39 MW, meaning around 88.4 percent of the potential remains untapped.
Therefore, the Ministry of ESDM is pushing for accelerated PLTP development through regulatory improvements, incentives, and firmness towards developers so that concessions already obtained do not stall without project realisation.
“There is no other way to accelerate geothermal implementation so that it can become electricity or other products, other than collaboration between businesses and regulators,” he said.
Bahlil said the economic aspect is also a concern because the economic value of geothermal has reached around 9.5 US cents per kilowatt hour (kWh), but this level is still considered inadequate by business players.
The government is preparing tax incentives as well as a revision of Government Regulation Number 7 of 2017, which is directed, among other things, at indirect utilisation of geothermal energy and improving investor returns.
A revision of Presidential Regulation Number 112 of 2022 is also being prepared to accelerate the development of new and renewable energy.
At IIGCE 2026, the government handed over Geothermal Permits to PT PLN (Persero) for the Gunung Ungaran Geothermal Working Area (WKP) and to PT Telaga Rano Geothermal for the Telaga Ranu WKP.
The government is also preparing to offer five WKPs and seven Preliminary Survey and Exploration Assignment Areas in 2026.
Geothermal utilisation is also being directed beyond power generation, as Ministry of ESDM data records that geothermal applications have also supported coffee drying businesses in Kamojang, palm sugar processing in Lahendong, and the development of mineral extraction from geothermal activities in Dieng.