Indonesian Political, Business & Finance News

Geothermal Energy: More Than Just Electricity, Opening Economic Opportunities for Communities

| | Source: KOMPAS Translated from Indonesian | Energy
Geothermal Energy: More Than Just Electricity, Opening Economic Opportunities for Communities
Image: KOMPAS

JAKARTA, KOMPAS.com - PT Pertamina (Persero) is optimising the development of geothermal energy beyond the electricity sector to drive community economic growth in various sectors.

This effort aims to accelerate the energy transition while supporting national energy independence, in line with the government’s Asta Cita.

Pertamina’s Vice President of Corporate Communication, Muhammad Baron, stated that around 90 countries have applied geothermal utilisation as an alternative energy source to support community economic activities.

Pertamina NRE and its subsidiary, PT Pertamina Geothermal Energy, Tbk (PGE), have begun diversifying from the geothermal business, not only in the electricity sector but also beyond electricity, including green hydrogen and carbon credits.

“Most global energy utilisation comes from geothermal, but the portion used for power generation. PGE’s beyond electricity development initiative presents a major opportunity for Indonesia, which has abundant geothermal potential,” Baron said in a press statement on Sunday (26/4/2026).

According to him, the use of geothermal energy offers various advantages, including greater efficiency, low emissions, environmental friendliness, and support for sustainability.

“With broad utilisation across various community economic sectors, geothermal energy becomes one of the most effective solutions in optimising renewable energy in Pertamina’s Geothermal Working Areas,” he added.

“Geothermal steam is currently utilised by communities around the geothermal areas managed by PGE through community involvement and development (CID) programmes, including for plantations and agriculture,” said Rika.

One iconic CID programme in the PGE Kamojang Area is geothermal coffee. This programme utilises geothermal steam for drying coffee beans, making the drying process faster and independent of weather conditions.

Additionally, in the PGE Lahendong Area, Pertamina collaborates with PT Gunung Hijau Masarang to utilise geothermal fluid for more environmentally friendly and sustainable palm sugar production.

In Lahendong as well, farmers use Pupuk Booster Katrili, an eco-friendly and economical liquid fertiliser produced from silica deposits in geothermal fluid. This product is processed using advanced technology and has helped communities fertilise plants and increase plant resistance to pest attacks.

“Clean energy is not just for electricity. There are many ways to optimise it so that it is directly felt by the community. These innovations align with Pertamina’s commitment to creating added value from geothermal energy to support more sustainable and inclusive development in Indonesia,” Rika concluded.

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