Government Confirms Geothermal Production and Processing Regions in Indonesia

Jakarta, CNBC Indonesia - The Ministry of Energy and Mineral Resources (ESDM) has officially designated regions for geothermal resource production and processing for 2026. The decision is outlined in ESDM Ministerial Decision No. 159.K/KU.01/MEM.S/2026, signed by Energy Minister Bahlil Lahadalia on 22 April 2026. The policy will serve as the basis for calculating geothermal revenue sharing for local governments in 2026. “The Minister has designated Geothermal Resource Production and Processing Regions for 2026,” the first clause of the regulation states, as cited on Tuesday (26 May 2026). The second clause states that the government has designated 29 regencies and two cities as geothermal production areas based on work areas under exploitation rights, joint operation contracts, and geothermal exploitation permits. Additionally, there are geothermal production areas from permits comprising 39 regencies and six cities for fixed levies, and seven regencies and one city for production levies. “The geothermal resource processing regions as per the first clause consist of seven regencies, with details listed in Annex III, an integral part of the Ministerial Decision,” the third clause states. The government explained that the designation of geothermal production areas is based on the percentage of geothermal work areas and estimated realisation of fixed and production levies for 2025. Meanwhile, the geothermal resource processing regions as per the third clause refer to regencies and cities hosting geothermal power plants that are at risk of negative externalities. Annexes of the decision list designated geothermal work areas including Kamojang, Lahendong, Ulubelu, Karaha Cakrabuana, Lumut Balai, Dieng, Patuha, Gunung Salak, Darajat, and Wayang Windu. Developers involved include PT Pertamina Geothermal Energy, PT Geo Dipa Energi (Persero), and Star Energy Geothermal. For example, in the Kamojang work area managed by PT Pertamina Geothermal Energy, Bandung Regency receives 90.83% while Garut Regency gets 9.17%. In Lahendong, Minahasa Regency receives the largest share at 52%, followed by Tomohon City at 43.76%. The total fixed geothermal levies for 2026 are set at Rp35.23 billion, while production levies total Rp126.88 billion.