Indonesia has the largest geothermal potential on Earth, at 23.74 gigawatts (GW). However, the Ministry of Energy and Mineral Resources (ESDM) noted that only 2.7 gigawatts have been optimized so far.
Referring to the 2025-2034 Electricity Supply Business Plan (RUPTL), PLN Director of Project Management and Renewable Energy Suroso Iskandar said that Indonesia is targeted to have an additional 69.5 GW of power generation capacity. Of this amount, 5.2 GW comes from geothermal.
The investment needs for additional power generation capacity for 2025-2034 reached Rp 2,967 trillion. Of this target, investment from PLN's power plants reached IDR 567.6 trillion.
"With the huge potential of geothermal, this is an attractive investment opportunity. PLN is participating in the preparation of providing this electrical energy for the future," Suroso said at the Indonesia International Geothermal Convention & Exhibition (IIGCE) 2025 in Jakarta, Wednesday (17/9/2025).
Energy companies continue to expand to fulfill this geothermal potential. As stated by President Director of PT Pertamina Geothermal Energy Tbk Julfi Hadi, Pertamina is not only focused on oil and gas affairs, but also continues to expand its business into new renewable energy. Among them, geothermal.
Julfi explained that one of his company's latest geothermal investments is the construction of the Ulubelu Green Hydrogen Pilot Plant in Ulubelu, Lampung, last September 9. This facility is the first in the world to integrate anion exchange membrane (AEM) electrolyzer technology with geothermal energy as a clean power source.
This pilot plant is an important breakthrough for Pertamina in supporting the energy transition, accelerating the clean energy mix, as well as supporting the 2060 net zero emission (NZE) target.
The Ulubelu Green Hydrogen Pilot Plant is also projected as a technology learning center and commercial feasibility test, including demand and product quality studies for the next phase. The project integrates geothermal energy with the latest AEM electrolyzer technology, making it a world pioneer while emphasizing the direction of clean energy portfolio transformation.
With an investment of around USD 3 million, the Ulubelu Green Hydrogen Pilot Plant is targeted to start operating in 2026. The green hydrogen produced will be used for market tests, including the transportation and industrial sectors.
Investment risk mitigation
Julfi, who is also the Chairperson of the Indonesia Geothermal Association (INAGA), said that despite its great potential, investment in the geothermal sector carries a significant risk. From the exploration stage to production, it takes about 7 years.
Even when exploration is successful, geothermal sales can only be used for electricity production. This is different from oil, gas and coal, which can be utilized for various purposes.
"This is where actors need the state's support to ensure geothermal planning and development can continue," Julfi said.
Supreme Energy President & CEO Nisriyanto said investment opportunities in geothermal are in line with the government's plan to fulfill its commitment to reach zero emissions by 2060. One of the efforts is to encourage the development and use of renewable energy (EBT) in the energy mix composition of 21% by 2030.
According to Nisriyanto, if they are serious about pushing the plan to be achieved, then geothermal industry players need partiality, such as regulatory certainty, in carrying out investments that take years.
Geothermal industry players need favoritism such as regulatory certainty in carrying out investments that take years.
M Pradana Indraputra, Special Advisor to the Minister of Energy and Mineral Resources for the Acceleration of the Settlement of Strategic Issues in the Energy and Mineral Resources Sector, said that investment in the geothermal sector has a major impact on the economy.
Investing up to USD 22 billion over the next 10 years could stimulate gross domestic product (GDP) growth of USD 30.2 billion by 2034. In addition, investment in this sector could create 42,700 green sector jobs by 2034.
Not only encouraging macroeconomic growth, the construction and development of energy transition can encourage the 4A principle. That is, availability, accessibility, affordability, and acceptability.
"The spirit is that energy transition should be accessible and affordable," Pradana said.
Director General of Natural Resources and Ecosystem Conservation at the Ministry of Forestry, Satiyawan Budiatmoko, said that one of the best geothermal potentials is in the most protected forests in Indonesia.
According to the data, up to 9.7 GW of geothermal potential is located in the bowels of the earth, which is covered by shady forests. This is where coordination between the Ministry of Forestry and the Ministry of Energy and Mineral Resources plays a role in balancing forest conservation with geothermal ecosystem development.
"Geothermal energy development must go hand in hand with the spirit of forest conservation," he said.
Potential conflicts with communities around the forest must also be resolved properly and fairly.
