Geothermal Energy Could Replace Coal-Fired Power Plants in Indonesia

PT Pertamina Geothermal Energy Tbk (PGE) is encouraging the use of geothermal energy as a primary clean source to support the national electricity load, given that domestic energy supply is still largely supported by fossil fuels through coal-fired power plants. PGE Director of Exploration and Development Edwil Suzandi stated that the stability of geothermal supply is similar to that of fossil energy. The development of this sector is considered capable of ensuring green energy security because its production is not affected by weather factors or time. “We realise that geothermal energy 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 Friday (24/7/2026). This characteristic makes geothermal superior to other renewable energies such as solar or wind, which are intermittent and dependent on weather. Furthermore, geothermal resources are abundant in Indonesia, eliminating the need for imports. “Geothermal is an indigenous resource; the resource is here, we do not need to import it, we do not need to buy it, it is already in our earth,” he added. Currently, Indonesia’s installed geothermal capacity only reaches around 11-12% of its total potential. PGE is committed to increasing its installed capacity from the current 727 MW towards a long-term target of 3 GW to strengthen the national electricity system. “The target is to become number one in the world, and PGE also wants to become a 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 ground-breaking for the development of the Lumut Balai Geothermal Power Plant Unit 3 in Muara Enim, South Sumatra. In addition, PGE is conducting exploration in the Gunung 3 area of Lampung and preparing for drilling in Kotamobagu, 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.