Israeli Company Set to Manage Geothermal Energy in North Luwu with Rp1.5 Trillion Investment

PT Ormat Geothermal Indonesia is ready to commence geothermal exploration in Rongkong District, North Luwu Regency.

PT Ormat Geothermal Indonesia is a global geothermal energy company established in 1965 in Yavne, Israel. The investment targets geothermal potential in North Luwu Regency.

Geothermal energy is a renewable energy source derived from the natural heat within the Earth’s core. This energy is stored in rocks and fluids beneath the Earth’s crust. It is environmentally friendly, stable, and can be harnessed for electricity generation.

The initial plan involves drilling three small wells based on a preliminary study conducted in 2024.

“There is a geothermal investment in North Luwu worth trillions, which is why we will improve access to Seko,” said Governor Andi Sudirman when met by Tribun-Timur.com in front of the Arafah Hall at the Sudiang Hajj Dormitory, Biringkanaya District, Makassar, on Sunday (22 February 2026).

Indonesia’s location along the Pacific Ring of Fire gives it enormous geothermal potential. A key advantage of geothermal energy is its stable supply throughout the year, unaffected by weather conditions. Moreover, its greenhouse gas emissions are extremely low compared to fossil fuel-powered plants.

This geothermal potential has now been identified in North Luwu, South Sulawesi, and will be explored by PT Ormat Geothermal Indonesia.

The Greater Luwu region of South Sulawesi is rich in natural resources, particularly mining. This potential has already been exploited, such as the nickel operations in East Luwu Regency under the concession of PT Vale Indonesia.