PGE Commences Drilling for Lumut Balai Unit 3 Geothermal Power Plant Project

PT Pertamina Geothermal Energy (PGE) has begun advancing the Lumut Balai Unit 3 Geothermal Power Plant (PLTP) project, a 55 MW facility in South Sumatra. Following a kickoff meeting earlier this year, the project has entered a further stage focusing on infrastructure preparation in Cluster 19 and Cluster E.

Andi Joko Nugroho, Director of Operations at Pertamina Geothermal Energy, said that signing the infrastructure works contract marks the transition of the project from the planning phase to on-site implementation.

‘Each development stage is designed in a structured and measured way so that all preparations—technical, operational, and safety—are ready when drilling starts,’ Andi said in a written statement on Friday, 6 March 2026.

He noted that this phase is a crucial step before drilling of the steam wells begins. In this phase, PGE has signed the infrastructure works contract covering the construction of well pads and access roads to the project site. The infrastructure is required to support the movement of heavy equipment and drilling activities in the project area.

Mobilisation of construction crews and equipment has begun since February 2026. This preparation is aimed at ensuring operational readiness ahead of the drilling programme scheduled to take place in Q2 2026.

The Lumut Balai Unit 3 development forms part of PGE’s long-term strategy to increase the national geothermal generation capacity. The project also aligns with the electricity sector development plan outlined in RUPTL 2025–2034 and the priority projects in the Blue Book 2025–2029 prepared by the Ministry of National Development Planning/Bappenas.

At present, Pertamina Geothermal Energy manages an installed geothermal capacity of 727 MW across six operating regions. In addition to Lumut Balai Unit 3, the company is developing several other projects, including Hululais Units 1 and 2 with a total capacity of 110 MW and a co‑generation project with PLN Indonesia Power with a total capacity of 230 MW.