Government Promotes Geothermal Energy Development Through Financing Schemes

The government is opening opportunities for financing-based incentives to encourage the development of new renewable energy (EBT). The primary focus is directed towards the geothermal sector amid global uncertainties. Finance Minister Purbaya Yudhi Sadewa emphasised that the Ministry of Finance has not prepared direct fiscal incentives. Schemes such as tax holidays or relaxations on import and export duties are not in the plans. “There are no direct fiscal incentives, but we are using financing,” Purbaya explained when met at BPPK in Jakarta on Friday (24/4/2026). This step is part of a long-term strategy to strengthen national energy resilience. The risks of global crises and oil price volatility form the background for this policy. “Clearly, this global crisis serves as a warning for us that we must have energy. Besides the oil we have here, we also have geothermal that has not yet been optimised,” Purbaya stated. The geothermal potential is considered still vast. Optimising this source is expected to support industrial electricity needs and reduce dependence on fossil energy. “We will try to expand there to supply larger electricity for industry and so on. So that if there are problems like this again, when the global economy or global oil prices rise, we will be more resilient,” he added. “So Geo Dipa, we might try to see how it can expand its exploration,” Purbaya said.