September 17, 2025 | 09:53 pm
TEMPO.CO, Jakarta - Indonesian Ministry of Energy and Mineral Resources (ESDM) announced that the country's installed capacity for geothermal power plants (PLTP) has reached 2.71 gigawatts (GW), an increase from the 2.6 GW recorded in 2024.
According to Eniya Listiani Dewi, Director General of New and Renewable Energy and Energy Conservation (EBTKE), this growth is a direct result of accelerated permitting for geothermal projects.
"Previously, permits took up to 1.5 years to process, but now it can be done in just seven days through the online single submission system," Eniya stated at the Indonesia International Geothermal Convention & Exhibition in Jakarta.
Since the acceleration program began, two projects—one in Cisolok, Sukabumi of West Java, and another in Nage, Ngada of East Nusa Tenggara—have successfully obtained permits in just one week.
Ambitious Geothermal Targets and Global Ranking
The government's Electricity Supply Business Plan (RUPTL) sets a target of adding 5.2 GW of geothermal capacity over the next decade. Eniya noted that Indonesia currently ranks second globally in geothermal utilization, behind the United States, which has a capacity of 3.6 GW.
"In the next five years, we aim for an additional 1 GW so that Indonesia can jump to the first position," she said.
She mentioned that recent projects have contributed 350 megawatts (MW) of electricity capacity with an investment of US$2 billion and have created 1,533 jobs. This effort is part of the RUPTL's goal of generating 780,000 green jobs.
Economic and Local Community Benefits
Beyond electricity generation, the use of geothermal resources also provides a financial boost to local communities through a production bonus scheme. For instance, the Ijen Geothermal Power Plant contributed Rp1.5 billion to the region's Original Regional Revenue (PAD) in addition to its 45 MW of capacity.
"Over the past 10 years, the total production bonus allocated to geothermal-producing regions has exceeded Rp1 trillion," Eniya explained.
This year, the ESDM Ministry will launch the first online geothermal auction via the Genesis platform. This system will enable local entrepreneurs and small and medium-sized enterprises (SMEs) to participate as support service providers, offering everything from security and catering to other essential services.
The platform is also designed to promote the use of local components, with domestic content levels (TKDN) in the geothermal sector currently at around 50% for both equipment and services.
Eniya also highlighted the potential for using geothermal heat in the agricultural sector. Examples include using geothermal steam to dry coffee and melon harvests, a practice already being implemented in some regions.
With its vast potential, Indonesia is poised to become not only a world leader in geothermal energy but also a learning center for other countries seeking to harness this renewable resource.
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