Indonesia Has Only Utilised 11% of Its 24 GW Geothermal Potential
Jakarta, CNBC Indonesia - Pertamina Geothermal Energy Tbk (PGEO) President Director Ahmad Yani has said Indonesia possesses enormous geothermal resources that have yet to be utilised optimally. Of the country’s total geothermal reserves of 24 gigawatts, only 11% have been tapped.
“This is our homework. Therefore, at this IIGCE, discussions with investors, stakeholders, IPPs and the government are jointly seeking solutions. How can this great energy source be developed in Indonesia,” Ahmad Yani told CNBC Indonesia on Thursday (20/8/2026).
One of the efforts being made, according to him, is creating a geothermal business climate that is feasible and bankable. To that end, joint calculations are needed to support this effort.
Under the 2025-2034 RUPTL, geothermal capacity is set to reach 5.2 gigawatts. He assessed that target as very realistic and also a primary target for PGE. Ahmad Yani stressed that PGE has a clear pipeline to achieve that target and support the green RUPTL. He said the move is also one form of government support for geothermal development.
“We at PGE already have a clear target regarding this opportunity,” Ahmad Yani concluded.
According to him, PGE will also reach 1 gigawatt by 2028 and become the number one geothermal company in the country.
“Then in 2034, it will become number one in the world with a capacity of 1.8 gigawatts. We already have a clear pipeline, so there is no issue regarding resources,” he asserted.
For information, PGE successfully achieved the Commercial Operation Date (COD) for PLTP Lumut Balai Unit 2 in June 2025. Meanwhile, PLTP Lumut Balai Unit 3 is under development with first drilling in July, and PLTP Lumut Balai Unit 4 has begun project development execution. In addition, the Gunung Tiga project (Ulubelu Extension) is in the process of drilling and well testing for further development.
“This is one of our efforts to develop the existing potential, with a measured investment strategy. Of course, the commerciality factor is paramount and is our main concern,” said Ahmad Yani.
The geothermal projects undertaken by PGE also provide added value to communities around the projects, opening up employment and boosting regional economies. Kamojang, for example, serves as evidence of more than four decades of growth alongside the community.
“Kamojang proves that for more than four decades, PGE and the community have grown together in building the economy there. Growing together in terms of knowledge, community development, and strengthening the community’s economy — that has been proven,” he explained.