Indonesia's Geothermal Projects Become a Magnet for Global Green Investment

Global investor interest in the clean energy sector continues to show a significant upward trend, aligning with the strengthening commitment of various countries to achieve net zero emission targets. Amid the massive investment needs to support the energy transition, geothermal projects in Indonesia are now seen as a golden opportunity for international capital owners. Capital market observer Dipo Satria Ramli revealed that investor attention on clean energy opens wide doors for geothermal companies to obtain long-term funding. According to him, there is a specific group of niche investors who exclusively target renewable energy projects with measurable prospects. “Geothermal projects with clear prospects will be very attractive to them,” Dipo said when contacted on Monday (15/6/2026). In the industry competition map, PT Pertamina Geothermal Energy Tbk (PGEO) is considered to be in a very advantageous position. Dipo mentioned that the maturity of the project portfolio is a determining factor for investors before placing their capital. This readiness is proven by the inclusion of three strategic PGE projects in the Green Book 2026 released by the Ministry of National Development Planning/Bappenas in early June. Beyond infrastructure readiness and offtaker certainty, the main attraction of geothermal investment in Indonesia lies in its business scheme. Revenue from electricity sales to PT PLN (Persero) is denominated in US dollars. This serves as a strong cushion for investors against fluctuations in the Rupiah currency. “Revenue payments from PLN are made in US dollars. So even if the Rupiah weakens, this investment remains attractive because there is no significant exchange rate risk,” Dipo added. As the owner of the second-largest geothermal potential in the world, Indonesia holds a strategic role. Unlike other renewable energy sources, geothermal can provide a stable, continuous baseload electricity supply, making it an important pillar for national energy security. The development of this sector has also become a priority in PLN’s 2025-2034 Electricity Supply Business Plan. With the funding needs for the energy transition continuing to increase in the coming decades, this momentum is expected to accelerate the increase in new and renewable energy capacity while strengthening Indonesia’s position as a leader in green investment on the global stage.