Indonesia Set to Offer 12 Geothermal Areas by 2026
Indonesia Set to Offer 12 Geothermal Areas by 2026
Reporter
August 20, 2026 | 04:21 pm
TEMPO.CO, Jakarta - Indonesia’s Ministry of Energy and Mineral Resources (ESDM) is preparing offers for 12 geothermal areas by 2026. The total consists of three Geothermal Working Areas (WKP) to be offered, seven Preliminary Survey and Exploration Assignment Areas (WPSPE), and two WKPs whose management is carried out through assignment to the state electricity company, PT PLN (Persero).
Director General of New, Renewable Energy and Energy Conservation (EBTKE), Eniya Listiani Dewi, said these offers are part of the government’s efforts to speed up the development of geothermal energy and create new investment opportunities.
“This is to be even more aggressive. Actually, last year we planned only two, but it was opened up to 10, if I’m not mistaken. Now, this year there are five plus seven, and that’s already more,” said Eniya after attending the Indonesia International Geothermal Convention & Exhibition in Jakarta on Thursday, August 20, 2026.
For the three WKPs to be offered in 2026, the government is preparing a total development capacity of 130 megawatts with an investment value of around US$741 million. These three areas are targeted to absorb 569 direct workers and create an additional 3,416 jobs through a multiplier effect.
These three WKPs are Hamiding with a capacity of 50 MW, Danau Ranau 40 MW, and Songgoriti 40 MW. WKP Hamiding is targeted to start commercial operations (commercial operation date/COD) in 2029. PT SEGI conducted a Preliminary Survey and Exploration Assignment (PSPE) in this area, which included drilling two exploration wells for US$28.85 million.
Meanwhile, the WKP Danau Ranau project is expected to begin operating in 2032. The government has received a letter of interest (LOI) from PT Cakrawala and PT Ignis. The estimated investment value is around US$228 million, with a need for 175 direct workers and a multiplier effect of 1,051 people.
On the other hand, WKP Songgoriti with a capacity of 40 MW is also targeted to operate in 2032. The Ministry of ESDM will re-auction it due to new interest from PT Petronesia and TAQA. The estimated investment for the development of this area is around US$228 million, with a need for 175 direct workers and a multiplier effect of 1,051 people.
In addition to these three WKPs, the government is preparing offers for seven WPSPE areas with a total potential reserve of 247 MW. The seven areas are Maranda Kawende with a potential of 26 MW; W. L. Seporaki with 32 MW; Sirejo 40 MW, Talamau 57 MW, Simisuh 27 MW, Massepe Sulili 40 MW, and Banda Baru 22 MW.
The plan to offer these seven WPSPE areas requires an investment of around US$140 million. Eniya said the requirements for offering these seven WPSPE areas still need to go through several stages. After the documents and requirements are declared complete, the auction process and determination of the winner will take about three months.
“The auction opening also needs about three months. Documents are submitted, then reviewed, followed by document certainty, and then reviewed until the final announcement,” she said.
In addition to the auction, the ESDM is processing the assignment of geothermal management to PT PLN (Persero) for WKP Oka Ile Ange in East Flores Regency and WKP Gunung Sirung in Alor Regency, East Nusa Tenggara. The total development capacity of these two WKPs is 15 MW. The estimated investment value is around US$86 million, and the development is projected to employ about 153 workers.
Read: How Indonesian Gov’t Muffles Dissent over Geothermal Projects
Click here to get the latest news updates from Tempo on Google News