Investment in Indonesia's geothermal sector over the past decade is estimated to have reached USD 8.7 billion, according to Energy and Mineral Resources Minister Bahlil Lahadalia in Jakarta. Lahadalia highlighted that over the past ten years, investment in geothermal power plants (PLTP) has seen a significant eightfold increase, with total investments estimated at USD 8.7 billion by 2024. At the 10th International Indonesia Geothermal Convention and Exhibition, the minister emphasized Indonesia's geothermal potential of 24 gigawatts, which constitutes about 40% of the world's total geothermal reserves. Currently, Indonesia’s PLTP capacity stands at 2.6 gigawatts, the second-largest globally. Additionally, the development of PLTPs has contributed to reducing carbon dioxide emissions by 17.4 million tons annually.
Minister Lahadalia also revealed that Indonesia's total power generation capacity has reached 93 gigawatts, with new and renewable energy (NRE) contributing 15% of this total. The government aims to increase the proportion of NRE in the national energy mix to 23% by next year. However, challenges persist, particularly the lack of electricity grids in certain regions, which hampers progress toward this target. For instance, Riau possesses NRE resources but lacks the necessary electricity grid infrastructure to connect the energy. Lahadalia emphasized that geothermal energy could play a crucial role in increasing the NRE share in the national energy mix, reaffirming the government's commitment to optimizing Indonesia's abundant geothermal potential.
