Could Replace Coal-Fired Power Plants, This Is Indonesia's Clean Energy 'Treasure'

PT Pertamina Geothermal Energy Tbk (PGE) is pushing for the utilisation of geothermal energy as a mainstay clean energy source capable of supporting national electricity demand. This move is considered crucial given that Indonesia’s electricity supply is still dominated by coal-fired steam power plants (PLTU).

PGE Director of Exploration and Development Edwil Suzandi stated that geothermal energy has characteristics almost similar to fossil fuels. Unlike solar and wind energy, geothermal power plants can generate electricity stably without depending on weather conditions or time of day.

“We realise that geothermal is similar to fossil energy in that it can support baseload, or energy that is not affected by heat, rain, day or night, so it will consistently produce electricity in any situation,” he said on CNBC Indonesia’s Energy Corner programme, quoted on Monday (27/7/2026).

This characteristic makes geothermal superior to other intermittent renewable energies such as solar or wind. Furthermore, geothermal resources are abundant within Indonesia, eliminating the need for imports.

“Geothermal is an indigenous resource. The resource is here, we do not need to import, we do not need to buy, it is already in our earth,” he added.

Currently, Indonesia’s installed geothermal capacity only accounts for around 11-12% of its total potential. PGE is committed to increasing its installed capacity from the current 727 MW to a long-term target of 3 GW to strengthen the national electricity system.

“Our target is to become number one in the world, number one in the world, and PGE also wants to become the company with the largest installed capacity in the world, which is 3 GW. That is our vision going forward,” he explained.

To achieve this target, the company is accelerating various projects, including the groundbreaking for the Lumut Balai Unit 3 Geothermal Power Plant in Muara Enim, South Sumatra. In addition, PGE is conducting exploration in the Gunung 3 area of Lampung and preparing for drilling in the Kotamobagu area, North Sulawesi.

“Several projects are currently under discussion with PLN. God willing, in the next few days we can resolve and sign an agreement that will add around 45 MW of capacity,” he concluded.