Geothermal Power’s Double Impact: Creating New Economic Activity Along Operational Routes

Jakarta — PT Pertamina Geothermal Energy Tbk is seeking to maximise the wider benefits of geothermal development by opening up isolated mountainous areas and sustainably stimulating the local economy around its operational sites. The company says it employs up to 2,000 local workers.

PGE Operations Director Andi Joko told reporters at the Kamojang Geothermal Power Plant (PLTP) site in Bandung on Tuesday (20 October 2026) that geothermal development was about more than generating electricity.

“Geothermal development is not just about electricity; it is also about the benefits it brings to the community,” Andi said.

He explained that geothermal operations in mountainous areas encourage the construction of supporting infrastructure, including roads. These routes connect previously isolated areas and can prompt new economic activity along the operational corridors.

Geothermal projects also provide significant employment for local residents. PGE said it regularly employs at least 210 people from surrounding communities to support day-to-day operations.

That figure rises sharply when a power plant is at the peak of its construction phase.

“We can employ as many as 2,000 people at the peak of building a power plant, and almost all of them are local,” Andi said.

Tina Talisa, Special Staff to the Vice-President for Community Economic Empowerment and Social Development, meanwhile stressed the importance of direct use of geothermal energy for nearby residents. She said the benefits should not be focused solely on areas far from operational fields.

“Direct use is not simply a matter of saying, ‘There is CSR’; it is about showing that surplus production, which previously went unused, can instead benefit the community,” Tina said.

She stressed that communities in mountainous areas near operational sites should be the primary beneficiaries of the economic and social gains from clean energy.

By combining renewable energy supply, infrastructure development and the empowerment of local residents, geothermal development is expected to create lasting prosperity for surrounding communities.