Indonesian Political, Business & Finance News

PLN Supports Indonesia's Geothermal Development, Ready to Collaborate for National Energy Security

| Source: ANTARA_ID Translated from Indonesian | Energy
PLN Supports Indonesia's Geothermal Development, Ready to Collaborate for National Energy Security
Image: ANTARA_ID

PT PLN (Persero) is ready to accelerate the development of Indonesia’s geothermal energy potential by targeting an increase in installed capacity from the current 2.8 gigawatts (GW) to 7.9 GW by 2033, positioning the country to become the world’s largest producer. This strategic move aligns with the 2025–2034 Electricity Supply Business Plan (RUPTL) and the national renewable energy mix target.

Speaking at the Indonesia International Geothermal Convention & Exhibition (IIGCE) 2026 in Jakarta on Wednesday (19/8), Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia affirmed the government’s commitment to promoting clean energy breakthroughs to strengthen national energy sovereignty and independence amid global geopolitical dynamics. He said developing renewable energy such as geothermal is crucial to minimise dependence on imported fossil fuels.

“Based on that reasoning, President Prabowo has ordered us to immediately seek alternative breakthroughs to boost our energy sovereignty. There is no other way but to accelerate the implementation of geothermal so it can become electricity or other forms. There must be collaboration between businesses and regulators,” Bahlil said.

On the same occasion, Chairman of the Indonesian Geothermal Association (API), Julfi Hadi, underscored the importance of the momentum marking a century of geothermal exploration in Indonesia as a turning point for a major leap forward. He also fully supports the government’s target to make Indonesia a global geothermal giant.

“Indonesia has local resources, has indigenous resources, namely the largest geothermal potential in the world. Geothermal energy has a special characteristic of being a reliable base load. It is the only renewable base load available today, clean and spread widely from Sabang to Merauke. The absolute key to achieving the Geothermal Vision 30.1 is collaboration,” Julfi said.

Strong collaboration between the government, PLN, business players, and all stakeholders is key to optimising the nation’s geothermal potential. Through the Geothermal Vision 30.1, the government has a strategic target to make Indonesia the world’s number one geothermal energy producer by 2030.

Meanwhile, PLN President Director Darmawan Prasodjo said the company is ready to support President Prabowo Subianto’s strategic policies in developing national renewable energy, including geothermal which has potential of up to 23.2 GW.

“Indonesia has a golden opportunity to bring its geothermal wealth to become a world energy leader. In line with the government’s direction through RUPTL 2025-2034, from the current capacity of 2.8 GW, we will push for an additional capacity of 5.1 GW, leaping to a total of 7.9 GW by 2033, potentially becoming the largest in the world,” Darmawan asserted.

Darmawan continued that according to the RUPTL 2025-2034 roadmap, cumulative capacity is planned to increase gradually through the addition of 110 projects. Of the total projects, 25 units with a total capacity of 0.6 GW will be developed by PLN, while the other 85 units will be developed by Independent Power Producers (IPP) amounting to 4.5 GW.

To accelerate the realisation of this target, the company is also opening collaboration through the Geothermal Exploration & Energy Conversion Agreement (GEECA) scheme for PLN Geothermal Working Areas (WKP) and the Steam Sales & Energy Conversion Agreement (SECA) for non-PLN WKP. From the total planned 79 projects (45 GEECA projects and 34 SECA projects), the additional geothermal capacity is projected to reach 3.1 GW.

“PLN is opening the widest possible collaboration for partners through the GEECA and SECA schemes. Through this fair collaboration, it is hoped to accelerate geothermal development as one of the domestic renewable energy sources,” Darmawan said.

At IIGCE 2026, synergy in renewable energy development was further strengthened through various actions and collaborations. The government, through the Ministry of Energy and Mineral Resources, symbolically handed over the Geothermal Permit Decree (SK IPB) for the Gunung Ungaran WKP to PLN. On PLN’s side, the signing of a Strategic Partnership Declaration for Geothermal Development with partners on Geothermal Power Plant (PLTP) projects with a total capacity of up to 453 megawatts (MW) was carried out.

In addition, PLN Group through PLN Indonesia Power together with PT Pertamina Geothermal Energy Tbk also signed a Letter of Intent (LoI) for cooperation in purchasing electricity from the development of the Lahendong Binary (Bottoming) Unit 15 MW in North Sulawesi and the Ulubelu Binary (Bottoming) Unit 30 MW in Lampung.

“With government support and partner collaboration, PLN is ready to accelerate geothermal development. Going forward, geothermal will not only strengthen reliable baseload electricity supply but also support energy self-sufficiency, energy security, and the acceleration of the national energy transition,” Darmawan concluded.

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