Ormat Wins Geothermal Tender in Halmahera — Is It Really Affiliated with Israel?
PT Ormat Geothermal Indonesia has become the subject of intense public debate over allegations that the company is affiliated with Israel. The firm is a subsidiary of Ormat Technologies, which is based in the United States.
Ormat Technologies was founded in 1965 in Yavne, Israel, by the engineering couple Lucien and Yehudit Bronicki. To this day, the company maintains its principal manufacturing facilities in Israel. Ormat was listed on the Tel Aviv Stock Exchange in 1991 and subsequently floated on the New York Stock Exchange in 2004 under the ticker symbol ORA.
The Ministry of Energy and Mineral Resources (ESDM) has officially designated PT Ormat Geothermal Indonesia as the winner of the tender for the Telaga Ranu Geothermal Working Area (WKP) in West Halmahera Regency, North Maluku. The decision was formalised through Minister of ESDM Decree Number 8.K/EK.04/MEM.E/2026, signed by the Director General of New, Renewable Energy and Energy Conservation (EBTKE), Eniya Listiani Dewi, on Wednesday, 12 February 2026.
The Telaga Ranu WKP in West Halmahera possesses high-enthalpy geothermal reserves with an estimated resource potential of 72 megawatts and an initial development target of 40 MW.
PT Ormat Geothermal Indonesia has been operating in Indonesia for approximately a decade and has committed to increasing its investment to nearly US$1 billion (approximately Rp16.2 trillion) by 2030, including through the Sarulla geothermal power plant project in North Sumatra.
Beyond the Telaga Ranu project, Ormat is also involved in developing the Ijen Geothermal Power Plant in East Java in partnership with a subsidiary of PT Medco Power Indonesia. The Ijen Unit 1 plant commenced commercial operations in the first half of 2025 with a capacity of 35 MW.
In North Sumatra, Ormat holds a 12.75 per cent stake in the Sarulla Geothermal Power Plant consortium — one of the world’s largest single-contract geothermal projects, with a capacity of 330 MW and fully operational since 2018.
The approval has immediately drawn scrutiny as it is seen to present a political contradiction, given that Indonesia has long been known for its consistent support for the Palestinian cause and does not maintain diplomatic relations with Israel.
The Executive Director of the Centre of Economic and Law Studies (Celios), Bhima Yudhistira, assessed that the involvement of an Israeli-affiliated company could further weaken Indonesia’s moral standing on the international stage.
The Mining Advocacy Network (JATAM) North Maluku has urged the government to immediately revoke PT Ormat Geothermal Indonesia’s operating permit and halt the geothermal project. The Ministry of ESDM’s decision was deemed to disregard moral and humanitarian considerations given the company’s background.
In addition to geopolitical concerns, the Telaga Ranu project has also raised environmental apprehensions. Halmahera is recognised as a region of high biodiversity with forest ecosystems that are sensitive to industrial pressure. The expansion of this energy project could potentially exacerbate damage in an area already affected by extractive industrial activities.