Geothermal Development Delivers Tangible Benefits for Regional Development
The utilisation of geothermal energy not only contributes to the national clean energy supply but is also increasingly demonstrating its role in driving community welfare and regional development. Through direct utilisation for productive economic activities, the distribution of production bonuses, and community empowerment programmes, the geothermal sector is considered capable of delivering sustainable social, economic, and environmental benefits.
This was highlighted during the National Geothermal Seminar held in Jakarta on Wednesday (17/6). In the forum, the Ministry of Energy and Mineral Resources (ESDM) presented various positive impacts of geothermal development that have been felt by communities in several regions.
Mustika Delimantoro, the Coordinator for Geothermal Investment and Cooperation at the Ministry of ESDM, explained that geothermal utilisation is not limited to generating electricity, but also opens opportunities to increase the economic productivity of the community.
“Geothermal energy does not only produce electricity, but can also be utilised directly to increase the economic productivity of the community, strengthen food security, and create added value for the region,” said Mustika.
The contribution of the geothermal sector is also felt by local governments through the production bonus mechanism. The Regional Secretary of Garut Regency, Nurdin Yana, revealed that during the 2015–2025 period, Garut Regency received geothermal production bonuses worth IDR 137.84 billion.
“Geothermal production bonuses have become an important instrument that allows local governments to accelerate development and improve the welfare of the community around the development area,” said Nuldin.
These funds are utilised for various development programmes. In 2025, the Garut Regency Government has allocated IDR 14.43 billion from geothermal production bonuses, including IDR 7.21 billion for financial assistance to 36 villages and IDR 2.89 billion for grants to 94 religious facilities.
Additionally, the funds are used for the construction and reconstruction of several strategic road sections, such as Jalan Cigadog, Jalan Palnunjuk–Pasirwangi, and Jalan Pasirwangi–Darajat.
For 2026, the allocation of production bonuses amounting to IDR 8.40 billion is directed towards the construction of river embankments, rehabilitation of irrigation networks, development of water supply systems (SPAM), sanitation facilities, reconstruction of village roads, as well as the rehabilitation of primary and junior high schools.
On the other hand, geothermal development also encourages various social and environmental innovations. One example is implemented by Star Energy Geothermal, which operates the Wayang Windu, Darajat, and Salak geothermal fields with an installed capacity of 929.3 megawatts (MW). This capacity is equivalent to the clean energy supply for approximately 1.44 million households annually.
The Head of Geothermal Engineering at Star Energy Geothermal Wayang Windu, Ismail Hidayat, emphasised that the success of geothermal development must be measured by the impact felt by the community and the environment.
“The success of geothermal development is not only measured by the energy produced, but also by the positive impact that can be felt by the community and the environment sustainably,” he stated.
Through a community empowerment programme titled ‘Tumbuh Bersama’ (Growing Together), the company has developed mushroom cultivation involving local community groups. This programme has produced the Genki Noko Farm, which is now capable of producing up to 40,000 mushroom logs, possesses its own legal entity, and has increased its business cash from IDR 1 million to IDR 30 million.
In addition to supporting the community economy, the programme also contributes to stunting prevention efforts through the provision of local food ingredients. The use of rice straw waste and coffee husks as mushroom growing media also yields environmental benefits by reducing greenhouse gas emissions by approximately 3,787 kilograms of CO2e per year, while creating an additional potential income for the community of IDR 12.75 million per year.
With these various benefits, geothermal energy is considered to have a strategic role not only as a renewable energy source but also as a development instrument capable of driving economic growth, improving community welfare, and maintaining environmental sustainability simultaneously.